• Property rights are considered one of the most fundamental requirements of a capitalist system, and are partly why there is need for government.
• Property rights are the legal controls of the ownership of a good.
• Property rights can be issued through legislature and regulations.
• A property right is the exclusive authority to determine how a resource is used and who it is owned by.
• The lack of property rights makes it hard to identify who is responsible for a negative externality, and who should therefore pay taxes to amend them and to solve the market failure of over-production. [...]