Economic analysis implies that one of the most effective ways to deal with potential damages from environmental pollution is to
A) declare the relevant resources to be public goods, owned by the public.
B) establish and enforce property rights for the resources that are being damaged, if possible.
C) allow the government to take over and control all natural resources.
D) enact legislation that makes all environmental pollution illegal.

Question

Quizplus · Accepted Answer

Establishing and enforcing property rights can create incentives for resource owners to manage and protect their resources efficiently, leading to better environmental outcomes.

Economic Analysis Implies That One of the Most Effective Ways