1Cademy - According to the economic framework for resolving harmful external effects through property rights, the initial assignment of the right (e.g., to a factory to pollute or to a community to have clean air) does not affect the distribution of wealth between the parties, provided they can negotiate without cost.

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According to the economic framework for resolving harmful external effects through property rights, the initial assignment of the right (e.g., to a factory to pollute or to a community to have clean air) does not affect the distribution of wealth between the parties, provided they can negotiate without cost.

Updated 2025-08-21

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