Incentives to pollute stem from an absence of property rights in the environment and from the collectively consumed nature of whatever is being polluteD.

Question

Quizplus · Accepted Answer

When property rights are not clearly defined in the environment, individuals and companies may not have to pay for the harmful effects of their pollution, leading to an incentive to pollute. Additionally, if the environment or resources being polluted are collectively consumed, individuals may not feel the full cost of their actions and may therefore have an incentive to pollute.

Incentives to Pollute Stem from an Absence of Property Rights