Determine the optimal level of a pollution tax

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Reference no: EM131169445

1. List and discuss a situation where emissions standards would be preferable to either pollution taxes or a system of transferable permits?

2. Explain how an economist would determine the optimal level of a pollution tax. What is the major uncertainty in using a pollution tax?

3. What are some particular problems with stock pollutants? Why might a reduction in emissions levels of a stock pollutant be insufficient in reducing the negative effects of the pollutant?

Reference no: EM131169445

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