talk about market failure
market failure occurs because u cannot place a propety right nor price on the enviroment therefore it results from the difference between private and social costs and benefits the difference is externalities.or more simply when u try and take into account indirect costs such as damage to the environment.
the price mechanism cannot place a price on these costs. an example of a negative externality would be pollution from factories cause sulpur dioxide in the air harming others. private benefits as they make profits from production and doesnt have to pay for pollution the social costs are bared by another who does not benefit from the production
social costs of managment are the resulting costs inherented with government plans to try and mange environment. Could make response to how the cap and trade system is a method trying to be implemented by labour but it is seen as a tax which will just result in incurring costs to the major population
also how with environmental managment u can explain how it benefits resources as they are not just overused or exploitad for maximum short term growth resulting in the depletion an permanente scariing of the environment. With the depletion of resources this will lead to a fall in output.
