Description
Litigation and legal liability are important components of a “free market” approach to environmental issues and pollution. Yet an important part of this approach is that responsible parties will have to be held financially responsible. Consider the following short news story regarding the recent chemical spill in West Virginia, and the implications you see – if any – for a litigation and liability approach to pollution control. If we were to rely on more of a market-based approach to pollution, including litigation as a means of establishing property rights violations, do you think there would be a danger of businesses creating “shell companies” that were judgment-proof to effectively avoid liability? If so, would this create a need for regulation after all?
Please write 2-3 pages (double spaced) on this question. Must have references.
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Explanation & Answer
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Running head: ECONOMICS
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Economics
Student’s Name:
Institutional Affiliation:
ECONOMICS
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Economics
Firms operating in any type of market need to be responsible for all the actions they
undertake on the global scene. The statement implies that when faced with anything negative,
any firm in the worldwide stage needs to come up with sound suggestions on how to handle the
situation. It is important that any community has both market and government forces in
regulation of the market. The market forces should be dominant in the free market economy
while government and legislation should be minimal and limited only to the aspects that are
harmful to the citizens such as price wars and damage to health. In the West Virginia case, it was
necessary for the government to intervene and litigation and legislation were an appropriate way
to go. The spill was harmful to the locals and polluted their la...
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