Environmental Economics – The Coase Theorem implies that private solutions

Environmental EconomicsProblem Set 2 (Due July 12, 2016)Answer True, False, or Uncertain. Justify your answer with no more than 5 sentences(points will be deducted for irrelevant materials).1. The Coase Theorem implies that private solutions to environmental problems arealways superior to public solutions.2. The theory of Bootleggers and Baptists explains why inefficient environmentalregulations are adopted.3. Uber is not an example of the sharing economy, and hence it cannot help solvingany environmental problems.4. As a global public good, climate change cannot be solved using the property rightsapproach.


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