Mr. Jones' sewage affects Mr. Smith's drinking water.
What measures could be taken to make Mr. Jones take into
account the consequences of his actions when he disposes
The law could require Mr. Jones to pay damages to Mr.
The law could encourage Mr. Smith to bribe Jones not
The government could institute a
sewage charge, requiring Jones to pay for each unit of
Any of the above would make Jones
aware of the unfavorable effects of his sewage.
Some people argue that the extinction of
a moas of New Zealand (moas were giant flightless birds)
was caused by over-hunting by the first human
inhabitants. They see here a problem of:
the law of diminishing returns.