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To yield just outcomes, these imaginary insurance decisions should be made against the backdrop of a fair framework for interaction including a free market economy based on private ownership of resources with appropriate contract law and tort law and regulation of externalities.
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Like you, I believe that progressive taxation and regulation of 'externalities' can be consistent with economic freedom.
There are an increasing number of externalities -- such as government regulation and patent strategies (both NPEs/trolls and big company patent thickets) that occasionally get focused on but in my experience are not what actually matters.
In setting up such policies and regulations, the positive externalities of hydropower versatility of energy services, very few regional or global impacts, flood control, etc.—should be clearly recognized.
My general assumption is that when you're talking about genuinely national matters, where what businesses do has an impact across state lines, and where there are lots of externalities, it's good to have federal regulations.
This is an example of externalities as pure use-value.
Mr. Coase's profound insight was that this view ignored the inherently reciprocal nature of externalities.
Creative pursuits do provide all sorts of externalities, difficult to measure though they may be.
"But suppose we think there are all kinds of externalities to renewable investments.
Although many studies have proposed policy solutions of externalities, measuring externalities is still a challenge.
"We found out that there were actually a bunch of externalities in the whole supply chain.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com