Why might a system of marketable pollution permits lead to a higher concentration of polluted areas than would a command-and-control system?
What will be an ideal response?
Under a command-and-control system, each firm (in each city) might be required to reduce pollution by say 20%, while under a system of marketable permits, half the firms might reduce pollution by 40% and the other half might not reduce pollution at all. Pollution will be more prevalent in cities with firms with high abatement costs.
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Refer to the above figure. This firm is operating in the
A) long run since economic profits are greater than zero. B) long run since economic profits are less than zero. C) short run since economic profits are greater than zero. D) short run since economic profits are less than zero.
The opportunity cost of attending college is likely to be higher for a high school graduate who leaves a job grilling hamburgers than it is for a high school dropout who leaves a job working as a computer network administrator
a. True b. False Indicate whether the statement is true or false
The GDP of an economy is accurately calculated when: a. the values of both intermediate and final goods are included
b. the values of both intermediate and final goods are excluded. c. the value of intermediate goods are included, while the value of final goods are excluded. d. the value of final goods are included, while the value of intermediate goods are excluded.
The saying "Money is a veil.". means that
a. while nominal variables are the first thing we may observe about an economy, what's important are the real variables and the forces that determine them. b. money is the principal medium of exchange in most economies. c. the primary determinant of short-run economic fluctuations is not real variables, but rather changes in the money supply. d. in the long run money is of no importance to the determination of either real or nominal variables.