Examlex
Explain why the variance of an investment is a useful measure of the risk associated with it.
Rights To Pollute
Permits or allowances that grant entities the authorization to emit certain amounts of pollutants, often used in regulatory systems to control environmental damage.
Coase Theorem
The Coase Theorem postulates that if property rights are well-defined and transaction costs are low, parties will negotiate privately to correct externalities and allocate resources efficiently.
Externalities
Externalities are unintended side effects of economic activity affecting third parties not directly involved in the transaction, which can be either positive or negative.
Pollution Permits
Legal rights granted by governments to emit a specific amount of pollutants into the environment.
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