For the proponents of such approaches, markets fail to price natural assets and ecosystem services, which are ultimately factors of production much like capital and labour. The result is that this natural capital is overexploited relative to what is socially or economically optimal. In this context, where negative externalities render market outcomes socially inefficient, market interventions, such as taxing carbon or legislating so that forest management rights are given to local communities, are aimed at properly pricing natural assets and defining property rights.