The natural environment poses a problem for economic theory, Ask an Expert

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The natural environment poses a problem for economic theory. Even if we accept, for the sake of argument, that the free market serves both employer and employee, buyer and seller, equally, the environment may be harmed by market transactions. The air and water can suffer. Economists calls this the problem of externalities.

Do you think that companies are becoming green or must the government and consumer movements compel this to happen?

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