Final answer:
Property rights concerning properties next to water bodies are complex and vary widely, depending on jurisdiction. These rights might include public access to some extent and are balanced against environmental protection laws. The economic concept presented by Ronald Coase illustrates the importance of clearly defined property rights to manage externalities efficiently.
Step-by-step explanation:
The question pertains to the property rights of landowners concerning their properties that are adjacent to bodies of water such as oceans, gulfs, bays, deltas, or lakes. These rights can vary significantly depending on the jurisdiction. For instance, in many countries, coastal areas may be subject to public access rights or environmental protection regulations, which limit what property owners can do with their land. In the case of Sweden, the constitution provides a broad right of public access to the natural environment, which is an expansive interpretation of property rights compared to other countries where access may be more restricted.
Understanding property rights is critical when considering the balance between economic activity and environmental concerns (Mascia, M. and Claus, C. A. (2009). A property rights approach to understanding human displacement from protected areas: the case of marine protected areas. Conservation Biology, 23, 16-23.). The right of public access or environmental protection laws must be balanced alongside the rights of property owners to use their land.
It is also essential to address externalities as demonstrated by the economic theorist Ronald Coase. For instance, when a property (like coastal property) is affected by external factors (such as pollution or public access), Coase would propose that a clear definition of rights and responsibilities is necessary to manage these externalities effectively (Marsh, G. P. (1864). Man and nature. Harvard University Press, Cambridge, MA).