Environmental Markets
Environmental Econ
Assignment: In approximately 500 words, summarize the arguments made in chapters 1-4 in Environmental Markets, by Terry Anderson and Gary Libecamp.
In your summary, be sure to address the answers to these questions:
• Under what conditions will markets work best?
• What challenges regulators face when setting environmental policy?
• Why are resources that are boundable and observable likely to have lower transactions costs?
• What characteristics of a resource make Common Property Resource Management more feasible.
To Submit:
Write your summary in a Word document. Save that document to your own files. Go to the “Reading Assignments Tab” for our course in Moodle. Click “Anderson and Libecamp Ch 1-4 Submission” to upload your work. Grading: • A+ Shows deeper understanding. Paper will be clear, concise and correct.
• A- The paper is technically correct but quotes heavily from the authors.
• B+ The paper is unclear and does not show a full understanding of the reading
• B- The paper is unclear and has errors in some places.
• C+ The paper is unclear, has errors, is too short to fully describe the reading.
• C- The paper is unclear and has errors. There is little correct analysis of the reading.
• D The paper shows little effort was given to the assignment. It is wrong and unclear in many places.
Tips for reading academic papers:
1. Read the first sentence of each paragraph.
2. Read the entire chapter.
Citation: Anderson and Libecap. (2014) Environmental Markets. Cambridge University Press.
Environmental Markets
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Environmental Markets
In reading the text Environmental Markets by Terry Anderson and Gary Libecamp, the following conditions are suitable for Efficient markets. First, an efficient market happens when there are property rights are well-defined and these rights are well-enforced. The rationale is that when this happens, it encourages individuals to have good knowledge by internalizing the environmental costs and benefits. The second condition is that when individuals have clear ownership, they can trade the property rights. In such scenarios, there is adequate allocation of resources, which brings out environmental outcomes. These conditions drive an effective market that brings out success where buyers and sellers can purchase products from the market and meet their needs when the situation is effectively presented (Anderson & Libecap, 2014). The markets will operate at their best in market environments with rules and fair competition. Markets operating at their best result in a good