Ronald Coase Is Famous for the Coase Theorem, Which Is

question 122

Essay

Ronald Coase is famous for the Coase Theorem, which is based on the premise that there is an economically efficient level of pollution reduction.Many economists believe that the tradable emissions allowance program that has been used to deal with the problem of acid rain has been successful in reducing emissions of sulfur dioxide in an economically efficient manner.Why isn't this program an example of the Coase Theorem?

---

Definitions:

Effector

A molecule, cell, or organ that actively responds to a stimulus and brings about an effect or change as a result.

Ectothermic Animals

Organisms that regulate their body temperature through external sources, unable to internally maintain a constant body temperature.

External Environment

The conditions, entities, and factors surrounding and affecting an organism or system outside of its immediate physical location.

Body Temperature

The measure of the body's ability to generate and get rid of heat, necessary for maintaining metabolic processes.