Marketable permits are a market solution to pollution abatement which work best when a. all firms have the same valuation for pollution. b. the location of pollution matters. c. the government knows the right quantity of pollution abatement. d. some fi rms have already invested heavily in abatement equipment while others have done nothing.
Marketable permits are a market solution to pollution abatement which work best when a. all firms have the same valuation for pollution. b. the location of pollution matters. c. the government knows the right quantity of pollution abatement. d. some fi rms have already invested heavily in abatement equipment while others have done nothing.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 8PA
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8. Marketable permits are a market solution to pollution abatement which work best when
a. all firms have the same valuation for pollution.
b. the location of pollution matters.
c. the government knows the right quantity of pollution abatement.
d. some fi rms have already invested heavily in abatement equipment while others have done
nothing.
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