By Mike Moffatt, About.com Guide to Economics since 2002
The Coase Theorem holds ONLY if transaction costs are low or zero. They clearly are not in the case of air pollution.
You might make a (silly) case that it applies at the international level (inter-national). The UN is, allegedly, one mechanism meant to deal with the transaction costs of multilateral, international coordination.
What about the case of non uniformely mixing air pollutant?
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Comments
You might make a (silly) case that it applies at the international level (inter-national). The UN is, allegedly, one mechanism meant to deal with the transaction costs of multilateral, international coordination.
What about the case of non uniformely mixing air pollutant?