When two countries engage in an international agreement, they often invoke some element of ___________, which encourages compensation to a polluter who suffers a net financial loss when it limits its emissions to a socially efficient level that considers other damaged parties.

Question

Quizplus · Accepted Answer

The concept described in the question refers to the "polluter pays principle (PPP)", which is the idea that those who cause pollution should bear the costs of managing and mitigating it. This principle is often incorporated into international agreements as a means of incentivizing polluters to act in a more socially responsible manner. Options A, B, and D are not relevant to the concept being described.

When Two Countries Engage in an International Agreement, They Often