Land Economics Market Failure In Environment Protection And Its Impact On The Price Paid By Land Consumers

Question

With the use of examples, explain how markets fail to protect environmental quality and how these factors may influence the price consumers pay for land.

Summary

The question belongs to Economics. The question is about the failure of markets to protect environmental quality and the factors that influence the price consumers pay for land. Environmental assets do not have a decentralized exchange mechanism and there is also a general failure to capture the cost of exploiting natural resources. These costs are not visible in the short run, but their presence can only be felt in the long run. The solution gives more details.

Total word count 261

 

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