Free markets and environmentalism
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Is the classical free-market view of economics an adequate guide for protecting the environment? Or, do we need a new more socialist or nature-centered approach?
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Solution Summary
The expert provides a discussion on the adequacy of the free market to protect the environment
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The problem with the free market approach to the environment is the tragedy of the commons. Each person can improve their own personal outcomes by increasing their levels of pollution, and at the same time can do little to reduce overall levels. Even though as a whole society suffers, people acting as free and independent agents can do little about it. Without ownership of the resource, the free market breaks down. ...
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