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Means of coping with negative externalities include all of the following except

A) implementing abatement technology.
B) patents.
C) property rights.
D) Pigovian taxes.
E) cap-and-trade.

1 Answer

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Final answer:

Patents are not a means of coping with negative externalities; they are a form of intellectual property right that does not address the social costs of negative externalities like pollution taxes or cap-and-trade systems do.

Step-by-step explanation:

The question asks about the means of coping with negative externalities, and the options presented are: A) implementing abatement technology, B) patents, C) property rights, D) Pigovian taxes, and E) cap-and-trade. Among these, the option that is not a mean of coping with negative externalities is patents. Means of addressing negative externalities typically involve either regulatory or market-oriented environmental tools, like pollution taxes (also known as Pigovian taxes), cap-and-trade systems, or the establishment of clearer property rights. Patents, however, are a form of intellectual property rights that give the patent holder exclusive rights to use and exploit a particular invention or process, which does not directly deal with negative externalities.

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