Free Market Environmentalism

Abstract

Free Market Environmentalism by Terry L. Anderson and Donald R. Leal is a call to action rather than an empirical study. These authors argue that the environment and the market are inextricably connected in a positive rather than negative way. In their view, individual property owners, who are in a position and have an incentive to obtain time- and place-specific information about their resource endowments, are better suited than centralized bureaucracies to manage resources. Government should strive as much as possible to encourage and facilitate the working of the market through the enforcement of property rights, including clearly specified titles, strict liability rules and adjudication of disputed property rights in court. Markets could then be created in a variety of environmental policy domains. For example, Yellowstone National park currently has a problem with migrating bison who wander off the park premises and infect the cattle of adjoining ranches with deadly viruses. To Anderson and Leal, this problem could be solved if park officials owned the bison and could be sued for damages. Overfishing could be solved through the allocation of property rights to specific people who would be allowed to trade their rights. This property rights model is applied tomore » a wide variety of environmental circumstances and problems including land policy, outdoor recreation, energy development, groundwater pollution, garbage disposal, and global warming.« less