Principal solutions to externalities in environmental law in Brazil

This paper aims to introduce some methodological tools used in economics to analyze the facts with environmental impact to society, because the law has to weight the benefit from the economic development and the cost of damage the environment.To achieve this goal, it starts presenting the concept of externality in Environmental Law as the effect of pollution to third part who do not produce this pollution, in this approach, it is to know that the market is not capable to be efficient (it is a market failure). In a second moment the paper shows how economy uses those methodological tools to induce agents to produce fewer externalities (pollution to third parts) with a focus on market mechanisms to internalize the externality and due real cost-benefit analysis by the society. At last, we analyse the solutions used in Brazilian Law to try to internalize the effects of the pollution and their problems. Reprinted by permission of Nomos Verlagsgesellschaft