People have an incentive to pollute when
A)There is collective consumption of an environmental service
B)No one has property rights to the environment
C)It is less expensive to pollute than to clean up
D)The MPC of polluting

Question

People have an incentive to pollute when
A)There is collective consumption of an environmental service
B)No one has property rights to the environment
C)It is less expensive to pollute than to clean up
D)The MPC of polluting < MPC of cleanup
E)All of the above

Quizplus · Accepted Answer

All of the options provided are reasons why people might have an incentive to pollute. A) Collective consumption of an environmental service means that the cost of pollution is shared among many, reducing the cost to any single polluter. B) Without property rights, there's a lack of accountability for environmental damage. C) If polluting is cheaper than cleaning up, economic incentives favor pollution. D) If the marginal private cost (MPC) of polluting is less than the MPC of cleanup, it's economically rational to choose polluting.

People Have an Incentive to Pollute When