Question

what do defenders of the market approach to environmental responsibilities state about the ability of economic markets to achieve a sound environmental policy? discuss if their responses are environmentally adequate.

Answer 1

Defenders of the market approach to environmental responsibilities believe that market-oriented tools, such as pollution charges and marketable permits, can achieve environmental protection more efficiently than traditional methods. They argue that the flexibility and incentives provided by these tools can lead to socially cost-effective pollution reduction.

Step-by-step explanation:

Proponents of the market approach to environmental responsibilities argue that economic markets have the ability to achieve a sound environmental policy due to their inherent incentives and flexibility. They believe that market-oriented tools like pollution charges and marketable permits can lead to reductions in pollution at a lower societal cost compared to traditional command-and-control approaches. These market-based policies are thought to be more effective because they incentivize firms to innovate and find cost-effective ways to reduce pollution. Moreover, specific policy tools within the market-oriented approach may be more suited to particular circumstances. For instance, marketable permits are effective when a small number of interested parties are involved in trading, while pollution charges might be better when many individuals contribute small amounts of pollution and are disinclined to trade.