Negative externalities that lead to some form of environmental damage, that arise from the over-exploitation of environmental resources.
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What may environmental market failures include?
Over-use of non-renewable resources or exploitation of the oceans, forests or atmosphere.
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What is one reason for environmental market failures?
A lack of clearly defined property rights relating to environmental resources such as the oceans, the forests or the atmosphere.
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What is the problem with a lack of clearly defined property rights?
Economic agents do not suffer any penalty for polluting the atmosphere, dumping waste in the oceans, or excess deforestation.
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What does no penalty caused by a lack of property rights lead to?
Over-use of resources and the rapid depletion of non-renewable resources.
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What are property rights?
The legal rights of ownership or use of an economic resource.
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What are environmental market failures related to?
The concept of the tragedy of the commons.
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What is the tragedy of the commons?
The over-use or exploitation of natural resources such as the oceans, the forests or the atmosphere that are not owned by individuals or organisations.
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How can environmental market failures and the tragedy of the commons be analysed?
Using negative externality diagrams, in production and consumption.
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Other cards in this set
Card 2
Front
What may environmental market failures include?
Back
Over-use of non-renewable resources or exploitation of the oceans, forests or atmosphere.
Card 3
Front
What is one reason for environmental market failures?
Back
Card 4
Front
What is the problem with a lack of clearly defined property rights?
Back
Card 5
Front
What does no penalty caused by a lack of property rights lead to?
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