Question of the Day (05-Sep-20)
The question below contains a paragraph followed by alternative
summaries. Choose the option that best captures the essence of the
Avoiding deforestation means that many landowners must forgo the right to cut down their trees, so that the world at large can benefit. As such, carbon emissions from deforestation are a classic example of “environmental externality”. So long as this remains the case, forests will continue to be cut down. To resolve the problem, it has been suggested that the people who forgo their rights are compensated. There is already a market for what are called “voluntary” credits in avoided deforestation.