Final answer:
Government agencies are responsible for ensuring property owners do not use their property harmfully, enforced through zoning laws and well-defined property rights. This framework aligns with the economic theories of Ronald Coase, who highlighted the need for clear property rights to resolve negative externalities.
Step-by-step explanation:
Entities charged with ensuring that property owners do not use their property in a manner that harms the public are typically government agencies. These agencies enforce regulations like zoning laws, which have been adopted by nearly every major urban area in the United States since the inception of the first zoning ordinance in New York City in 1916. Through zoning, local governments regulate land use, balancing the rights of property owners with the need to protect the public interest and welfare.
The concept of well-defined property rights is also crucial for determining responsibilities when usage leads to externalities, as exemplified by the Nobel laureate Ronald Coase. Based on Coase's theory, once property rights are clearly established, the responsible party (whether it be the railroad company or the farmer in Coase's example) is incentivized to find the most cost-effective solution to mitigate negative spillovers such as pollution or other damage.
Overall, the responsibility of ensuring that property is not used to the detriment of the public falls on government entities supported by clearly defined property rights, which create legal obligations to avoid or compensate for harm.