Oil leaks and spills are the most visible externality associated with offshore development, but public policy must also take into account another type of negative externality: cost-shifting through the political process (such as when environmentalists successfully lobby to ban offshore oil drilling). Fortunately, both environmental and political externalities can be resolved through the often-neglected institution of private-property rights.
|Other Independent Review articles by John Brätland|
|Summer 2010||Capital Concepts as Insights into the Maintenance and Neglect of Infrastructure|
|Winter 2008||Resource Exhaustibility: A Myth Refuted by Entrepreneurial Capital Maintenance|