Pollution Is a Negative Externality, but It Is Not Appropriate

question 149

True/False

Pollution is a negative externality, but it is not appropriate to view the problem of pollution as a common-resource problem.

---

Definitions:

Emission Permits

Emission permits are allowances given to companies, allowing them to release a specific amount of pollutants into the environment, used as a tool for regulating environmental impacts.

Environmental Quality

The condition of the natural environment and its ability to support life and activities, often measured by factors such as air and water purity, and biodiversity levels.

Property Rights

Legal rights to possess, use, and dispose of assets or properties.

Economic Outcomes

The results or consequences of economic activities, policies, or events, impacting wealth, resource allocation, and standards of living in a society.