Fishing,lumbering,tourism,and city buildings in Canada are harmed by acid rain,most of which comes from the United States.According to the Coase theorem,the problem is _____

Question

Quizplus · Accepted Answer

The Coase theorem states that private negotiations between affected parties can resolve externalities. However, in this case, the externalities are caused by cross-border pollution, which requires international negotiations. Such negotiations can be costly, time-consuming, and difficult to achieve, making it hard to solve the problem. Therefore, option D is the correct answer. Options A, B, and C are incorrect because geographical proximity and similar characteristics do not necessarily make it easy to solve the problem. Similarly, option E is incorrect because property rights to clean rain are not the root cause of the problem.

Fishing,lumbering,tourism,and City Buildings in Canada Are Harmed by Acid Rain,most