Economists understanding and statement of the environmental problem are likely to contrast from those of economists not trained with economic reasoning. One difference is that a layperson is likely to favor a program of direct regulation, in which the scarce resource to be controlled is directly limited by the government. Economists are likely to oppose that solution because it does not achieve the desired objective at the lowest cost possible in total resources regardless as to who pays those costs. As an alternative to direct regulation, economists will probably favor some type of marke…
