No abstract

Assigning property rights to individuals to pollute the environment or not be polluted from the actions of other individuals would lead to voluntary negotiations between the concerned individuals resulting in efficient allocation of the resources regardless of the initial specification of property rights (as cited in Tacconi, 2011, p. 3). The role of the state is limited to the assignment of property rights. State intervention is required when transaction costs are high (Coase, 1960).