For babies exposed to secondhand smoke, there is an increase in risk for developing asthma attacks, breathing problems, ear infections, impaired lung development, and coughing
Targeting the harm-causing element best allows market participants to internalize the externality or incorporate any external effects into their decision-making
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Cannabis and health Cannabis primarily acts on the body's endocannabinoid system and can have both medical and psychoactive effects: Short-term effects: relaxation, altered perception, increased appetite Risks: concentration disorders, anxiety, possible addiction Long-term risks: possible effects on mental health with frequent use Compared to alcohol, cannabis is often rated in studies as less physically toxic, but not risk-free
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