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Litigation and legal liability are important components of a “free market” approach to environmental issues and pollution. Yet an important part of this approach is that responsible parties will have to be held financially responsible. Consider the following short news story regarding the recent chemical spill in West Virginia, and the implications you see – if any – for a litigation and liability approach to pollution control. If we were to rely on more of a market-based approach to pollution, including litigation as a means of establishing property rights violations, do you think there would be a danger of businesses creating “shell companies” that were judgment-proof to effectively avoid liability? If so, would this create a need for regulation after all?

Please write 2-3 pages (double spaced) on this question. Must have references.


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