Asked by kkoln kkijknjn on May 08, 2024
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A market for pollution permits can efficiently allocate the right to pollute by using the forces of supply and demand.
Pollution Permits
Licenses issued by government authorities that allow holders to emit a specific amount of pollutants over a set period, intending to control and reduce environmental damage.
Supply And Demand
A fundamental economic model describing how the quantity of goods supplied by producers and the quantity demanded by consumers determine the price and quantity of goods and services in a market.
- Learn the principle of pollution permits and their role in efficiently aligning the right to pollute with market mechanisms.
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Learning Objectives
- Learn the principle of pollution permits and their role in efficiently aligning the right to pollute with market mechanisms.
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