Using markets and economic incentives to solve environmental problems

The conventional approach is to assume that government ownership and government regulations are necessary correctives to perceived “market failures.” The new approach recognizes that “government failures” are a curse that can be just as bad and sometimes worse.

Under the banner of the New Resource Economics, scholars have shown that important environmental goals are more reliably achieved when government’s role is made smaller and when property rights, freedom of contract and entrepreneurship take center stage. MORE