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to zero (Weiss, 1988; Pearce and Turner, 1990). Third, goods that have no price, whose production is highly uncertain, or that are valued by nonparticipants in markets, for instance, the survival of nonhuman species, tend to be systematically undervalued in markets (e.g., Krutilla and Fisher, 1975). Fourth, the theory of market failures does not compare the environmental effects of different kinds of imperfect markets. Knowledge does not support the easy inference that the more a market resembles theoretical perfection, the more of the benefits of free markets

 

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