Yes, Pigovian taxation is the natural way to deal with externalities. I summarize my position now: our economic theory is sound, and new foundations are not necessary. There is enormous room for improvement in “social engeneering”, and representation of production.
A last link. Probably what you are trying to do is EIO-LCA:
The original tool from Carnegie Mellon looks discontinued, but there are papers from 2019 (second lik above) and some other commercial tools (https://vitalmetrics.com/ghg-accounting).
This is a very helpful post, thank you. I especially appreciate the names and the resources.
I think where I would disagree is that price is a sufficient statistic, especially for externalities.
Your assessment would be that those need to be taxed into price?
Yes, Pigovian taxation is the natural way to deal with externalities. I summarize my position now: our economic theory is sound, and new foundations are not necessary. There is enormous room for improvement in “social engeneering”, and representation of production.
A last link. Probably what you are trying to do is EIO-LCA:
https://en.wikipedia.org/wiki/EIO-LCA
https://www.sciencedirect.com/topics/engineering/economic-input-output-life-cycle-assessment
The original tool from Carnegie Mellon looks discontinued, but there are papers from 2019 (second lik above) and some other commercial tools (https://vitalmetrics.com/ghg-accounting).