(Answered) Research the challenge of environmental destruction and pollution and explain why market solutions…

➤ Why can’t private bargaining always solve environmental externalities?
The Coase theorem applies only when property rights are clear and transaction costs are negligible. In environmental cases many affected parties, informational gaps, and high coordination costs make bargaining infeasible. Cross‑jurisdictional pollution further complicates deals, so private agreements rarely achieve socially optimal emission reductions without institutional support.