Question

What are better-defined property rights and what incentive do they provide to account for external costs?

Short answer

Property rights are legal ownership rights that others do not appear to be able to infringe on without paying a charge.
It incentivises acorporation to decrease pollution costs by compensating another company or aprivate whose property has been polluted.

Step-by-step solution

Introduction

Property rights are a kind of legal ownership right that prohibits others from infringing on the owner's property without paying recompense.

Explanation

Property rights aid in achieving a healthy balance of economic activity and pollution. Property rights would be unable to deal with the rights of what's seen as a right of ownership thatmay be infringed until compensation is paid. Farmers that burn their fields have property rights totryanddo so, but theinducement to churn it insteadof burn it's considered an external cost.