Answered: Regulations have an…

Regulations have an efficiency-enhancing role in the presence of exter- nalities. Discuss, with examples of regulatory approaches including the Coasian approach.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 33CTQ: Is zero pollution possible under a marketable permits system? Why or why not?

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Regulations have an efficiency-enhancing role in the presence of exter-
nalities. Discuss, with examples of regulatory approaches including the
Coasian approach.

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