Getting the Prices Wrong: The Limits of Market-Based Environmental Policy
Author(s)
Ackerman, Frank; Gallagher, Kevin P.
Abstract
Market-based policies are fast becoming the recommended policy panacea for all of the world’s environmental problems. Implicit in such recommendations is the theory that free markets, adjusted for externalities, can always create an “efficient” allocation of society’s resources. As a result, many contemporary policymakers advocate rolling back regulations in order to let the market protect the environment.
