The underlying reason of the problem of pollution is

Question

Quizplus · Accepted Answer

The problem of pollution arises from the fact that property rights to natural resources are not clearly defined and are expensive to enforce. This leads to a tragedy of the commons situation where individuals and firms have no incentive to act in a way that preserves the environment. The lack of clear property rights means that the costs of pollution are not borne by polluters, leading to market failure. While government regulation and consumer behavior can play a role in addressing pollution, the root cause is the absence of well-defined property rights.

The Underlying Reason of the Problem of Pollution Is