Sales of pollution rights or certificates

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Q1. 1. Why are fixed limits on pollution emissions for every firm likely to be an inefficient means of reducing pollution compared to a Pigouvian tax?

2. Would the sales of pollution rights or certificates be an efficient means of allocating a given amount of pollution? Elucidate.

3. Illustrate what are the essential differences among pure public goods also pure private goods?

Q2. Feudalism also mercantilism relied on marketplaces to solve the 3 main coordination problems.

Reference no: EM1311898

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