Pollution and other negative externalities arise because
A)there are no enforceable property rights to open-access resources
B)legislators cannot agree on what to do about them
C)they are the price consumers are willing to pay for production of goods and services
D)private property rights to pollute are controlled by businesses
E)science cannot decide how to control them

Question

Quizplus · Accepted Answer

Pollution and negative externalities arise because there are no enforceable property rights to open-access resources. Open-access resources are those resources that are non-excludable and non-rival in consumption, which means that they are available to everyone and their use by one person does not diminish their availability to others. In the absence of enforceable property rights, individuals and firms have no incentive to take into account the social costs of their actions and may engage in activities that generate negative externalities, such as pollution.

Pollution and Other Negative Externalities Arise Because