Vol.5 No.4 (October 2015)
Negotiation and Tort Law to Address Environmental Externalities of Economic Analysis
The problem of environmental externalities was an important manifestation of market failure, the crux of the problem was difficult to define the property rights. Unclear property rights resulted in the externalities. Through clear property rights, the resources can be effectively configured, which contribute to internalize the environmental externalities. The traditional model of dealing with environmental externality was mainly to rely on the government of relevant administrative de-partment, which was simple, easy to operate and control, and had obvious effect in the short term, but lacking of sustainability. Negotiation and tort law had an important role in solving the problem of environmental externalities, they also need to be studied and improved constantly. Several suggestions were put forward for addressing the environmental externality problem by negotiation and tort law.
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