Monday, July 16, 2012

Why shale-oil drilling in the US, but not in Europe?

If you give people secure property rights, they have the incentive to move the property to its highest valued use:
'Whoever owns the soil, it's theirs up to Heaven and down to Hell." So goes the ancient common-law principle. Today, however, almost no major country recognizes full subsurface private property rights, except for the United States.

2 comments:

  1. We need to be extremely careful with dealing of oil, as a Forex trader, I find this is the main core of things, if we are not careful about this then we will struggle big time. I don’t need to make any serious effort because I have got world class broker like OctaFX, it is incredible company with having the coverage of whole market which helps me so much given that I can always be sure of everything which brings out big deal of profits to me.

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  2. Who is making the bad decision? U.S. Property owners in North Dakota.
    Does the decision maker have enough information to make a good decision? Presumably, information about climate change is readily accessible.
    Does the decision maker have the incentive to make a good decision? No. The property owner is has the incentive to pursue profits. A reduction in the value of fossil fuels as a result of green technology could change the decision maker's behavior.

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