The problem of misuse of many environmental assets is a result of

Question

Quizplus · Accepted Answer

When property rights over environmental assets are not clearly defined or are imperfectly specified, it leads to the problem of misuse. Without clear ownership or authority, individuals may overexploit or degrade natural resources. Private ownership and public ownership can both have their own advantages and disadvantages, but the key issue here is the lack of clear property rights. High transaction costs can also be a barrier to sustainable use of environmental assets, but it is not the primary cause of misuse.

The Problem of Misuse of Many Environmental Assets Is a Result