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freight-oil1

Reuters: Canada demands oil trains carry more insurance, levy imposed

Article published: Feb 21, 2015 – out of date: no longer suitable for your IB Economics commentary

IB Economics syllabus: Microeconomics

The negative externality of railway oil transportation is taxed by the Canadian Transport Minister. Perfect topic to look into the negative externality of production. Another recent related accident: click here.

Source of image: Andrey Rudakov, Bloomberg

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