Evaluating the Solution of Negative Externalities with the WINGS Method

Article Information
Journal: Business and Economics Research Journal
Title of Article: Evaluating the Solution of Negative Externalities with the WINGS Method
Author(s): Ibrahim Tolga Coskun, Oguzhan Bozatli
Volume: 13
Number: 2
Year: 2022
Page: 257-270
ISSN: 2619-9491
DOI Number: 10.20409/berj.2022.372
This study aims to evaluate market and public solution proposals by comparing them in the internalization of negative externalities. In this framework, ten different criteria recommended in the studies conducted in the relevant field were discussed, and the examinations on these criteria were carried out by academicians working in one of the departments of fiscal theory or fiscal economics. For qualitative views to be converted into quantitative ones, to examine whether criteria are related to each other or not, and to reveal the existing relationships between criteria, WINGS, one of the multi-criteria decision-making techniques, was used as a method. In addition to the WINGS method results, the individual evaluation results of the academicians were given and compared. In this comparison, findings that were compatible and incompatible with the academicians’ individual evaluation views were also found. These similarities and differences were discussed in the study, and their possible reasons were revealed. Moreover, within the framework of the effects of criteria on each other, the affecting and affected groups’ differentiation were discussed. As a result of this evaluation, it was concluded that public solutions are more effective than market solutions among the solutions of negative externalities. It has been determined that taxes and regulations are the most effective solutions.

Keywords: Externality, Public Economics, Multi Criteria Decision Making Techniques, Decision Analysis, WINGS

JEL Classification: H23, C44, C65

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