Which type of approach does the Environmental Protection Agency take toward resolving externality problems?

Question

Quizplus · Accepted Answer

The Environmental Protection Agency is a government agency that takes a public-sector approach, using regulations and policies to address environmental externalities. Military action is not a typical approach to resolving externality problems, and free market solutions may not adequately address environmental externalities without government intervention. While Coasian bargaining may be a useful tool for resolving some externality problems, it is not the approach taken by the EPA as an agency.

Which Type of Approach Does the Environmental Protection Agency Take