Law and Economics, or Punctum Archimedis in Environmental Law

Abstract

This article examines the autonomous field of Law and Economics, indicates the importance of integrating the economical methodology in the process of comprehensively understanding the normative order and laments over the undesirable shortage of interdisciplinary education and academic dialogue regarding Law and Economics in Georgia. Moreover, this paper deliberates on the relevance of the Coase theorem for lawyers and policy-makers, displays the specific recommendations of its application in jurisprudence, including elucidating property rights, maximizing economic productivity and minimizing transaction costs. The following article discusses attempts and shortcomings to harmonize a decentralized market solution in environmental law and demonstrates regarding the example of the EU emission trading system that the method of Law and Economics can be used not only for a thorough analysis of the existing model but also as a pragmatic instrument for defining a normative program.

Keywords

• cap and trade
• coase theorem
• environmental law
• law and economics