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How cost- bene?t analysis works and build on material from

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Question: Should environmental and natural resource management policies only be considered when they pass a strict cost-bene?t analysis? Why or why not? Your answer should include a description of how cost- bene?t analysis works and build on material from class.  According to the Coase theorem, if transactions costs are low and property rights are clearly de?ned, the market will solve the pollution externality and get to the socially optimal outcome even if the ?rm is granted the right to pollute. Explain why that happens using both narrative and a graph.

Reference no: EM133598709

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