EC238 Lecture Notes - Lecture 10: Civic Virtue, Legal Doctrine, Greenwashing
Document Summary
Liability laws, property rights, moral suasion, green goods. The parties involved are the ones producing and suffering the environmental externalities; have strong incentives to seek solutions to the environmental problem: 2. Issue is whether people have the right to a particular level of environmental quality. That the polluting material was a direct cause of their damage: 2. Property rights must be well defined, enforceable, transferable: 2. There must be a reasonably efficient and competitive system for interested parties to come together and negotiate about how these environmental property rights will be used: 3. Transaction costs form of negotiating costs and costs of enforcement and policing must be low: 2. Open access and free riders free-rider problem effectively defeats the chances that a socially efficient equilibrium can be achieved through property rights assignments and bargaining (the more public the less chance of success: 3.
