Property Rights as a Framework for Resolving Externalities
One approach to addressing externalities is to establish and enforce property rights. [4, 5] For example, if a party affected by pollution, such as fishermen, holds a right to clean water, the polluting party, such as plantation owners, is forced to internalize the external cost. [9] This creates a situation where the polluter must either adopt alternative, non-harmful production methods or negotiate a compensation agreement with the affected party for the damages caused. [9]
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Social Science
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CORE Econ
Economy
Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
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