Final Answer:
Means of coping with negative externalities include all of the following except
The statement that is true is:
B) Patents.
Step-by-step explanation:
Emission charges: This is a means of coping with negative externalities. It involves imposing a fee on the emission of pollutants to discourage such activities.
Patents (True): Patents are not a means of coping with negative externalities; instead, they are a form of intellectual property protection granted to inventors to encourage innovation.
Property rights: This is a mechanism to address negative externalities. Well-defined property rights can encourage responsible resource use.
Pigovian taxes: This is a means of coping with negative externalities. Pigovian taxes are imposed on goods with negative externalities to internalize the external cost.
Marketable permits: This is a means of coping with negative externalities. It involves issuing permits that can be bought and sold, providing economic incentives for reducing emissions.
Explanation in Detail:
Emission charges: These are fees imposed on the release of pollutants into the environment. By assigning a cost to negative externalities, emission charges encourage firms to reduce pollution.
Patents (True): Patents, on the other hand, are not a means of addressing negative externalities. They are a legal mechanism granting inventors exclusive rights to their inventions, intending to encourage innovation.
Property rights: Well-defined property rights can internalize externalities. For example, assigning property rights over a common resource can prevent overuse or degradation.
Pigovian taxes: Pigovian taxes aim to internalize the external costs of certain activities. By taxing goods with negative externalities, the government encourages producers to consider these costs in their decision-making.
Marketable permits: These permits allow the holder to emit a certain amount of pollutants. Tradable permits create a market for pollution rights, incentivizing firms to reduce emissions efficiently.
The statement that is true is:
B) Patents.