Appropriate measures of compensation are relatively simple to put in place and are, if well done, fully compatible with efficient internalisation. They can be permanent or temporary, aiming at full or partial compensation. They require, however, that the logic of confrontation be abandoned and that the different actors commit to working in a framework of overall welfare maximisation. The gap between full costs and private, market-based costs is related to the inability of private actors to take into account all relevant information about welfare effects, as feedback mechanisms between private parties and appropriate incentive structures are lacking. “