Economic mechanisms for environmental protection: Business versus market transaction costs

Conchita Ayerbe and Carmen Górriz

International Advances in Economic Research, 2003, vol. 9, issue 2, 123-132

Abstract: This study presents theoretical arguments and evidence that attempt to show the contribution of economic mechanisms typical of a business for resolving problems of environmental protection. Firstly, a brief synopsis is given of the classic solutions that environmental economics proposes for correcting environmental externalities. Next, the benefit of expanding these two mechanisms is discussed so that they include those intermediate mechanisms for which it is not possible to clearly establish if they are developed within the domain of the market or the business. The study's focus resides in the fact that the explicit expansion of the range of solutions proposed from a macroeconomic point of view establishes a connecting point between environmental economics and business economics, an area in which academic attention to environmental matters has been significantly less. Copyright International Atlantic Economic Society 2003

Date: 2003
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DOI: 10.1007/BF02295713

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