A Proposal for Market-Based Policies for the Control of Crime Externalities

Graham Farrell, University of Cincinnati

The study of crime externalities is in its early stages. It is barely on the policy agenda, perhaps at the stage that environmental pollution and climate change were at a few decades ago. Portney and Stavins (2000) noted that "In 1989, little serious attention was paid by U.S. government agencies to the possibility of global climate change as a result of the greenhouse effect." Crime externalities occur where entities (including manufacturers, premises, persons, and environments) produce criminal opportunities, thereby producing costs to society that they do not bear. This study examines types of crime externalities, explores possibilities for market-based regulation, modes of delivery and issues relating to implementation.

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Updated 05/20/2006