What prevents the market system from achieving a clean environment on its own?

Question

Quizplus · Accepted Answer

Externalities such as air and water pollution can have negative impacts on the environment, but these costs are often not reflected in market transactions. Businesses may not internalize these costs or be held accountable for them, leading to a lack of incentive to prioritize environmental protection. As a result, government regulations and interventions are often necessary to ensure that businesses are held responsible and that environmental harm is minimized.

What Prevents the Market System from Achieving a Clean Environment