1. In their article, “How do Economists Really Think about the Environment,” Professor R.N. Stavins, Director of the Harvard Project on Climate Agreements, and Don Fullerton, of the National Bureau of Economic Research, discuss a series of myths about the relation between the environment and the economy, and how economists approach the issues of environmental protection.

They have identified four prominent myths:

1) Economists believe that the market solves all problems.

2) When economists do see a market problem, they always recommend a market solution.

3) When non-market solutions are considered, economists still use only market prices to evaluate them.

4) These economic analyses are concerned only with efficiency rather than distribution.

They argue that things are far more complex, that—despite their apparent reputation—economists do not necessarily believe that the market solves all problems, and that market failures are at the origin of environmental pollution.

Discuss this statement.