Utilizing market-based strategies, government can control contamination. By utilizing approaches, for example, tradable pollution permits or corrective taxes on contamination emissions a. Assume the government has a corrective tax in place on each ton of coal transmitted and there is an increase in the number of firms producing in this industry. If the government wants to maintain the same amount of pollution that existed prior to the entry of these firms, how should it adjust the corrective tax? Provide a well-labelled graph and explain. b. Assume that instead that the government has a pollution permit policy in place and there is an increase in the number of firms producing in this industry. If the government wants to maintain the same amount of pollution that existed prior to the entry of these firms, how should it adjust the number of permits issued? Provide a well-labelled graph and explain.
Utilizing market-based strategies, government can control contamination. By utilizing approaches, for example, tradable pollution permits or corrective taxes on contamination emissions
a. Assume the government has a corrective tax in place on each ton of coal transmitted and there is an increase in the number of firms producing in this industry. If the government wants to maintain the same amount of pollution that existed prior to the entry of these firms, how should it adjust the corrective tax? Provide a well-labelled graph and explain.
b. Assume that instead that the government has a pollution permit policy in place and there is an increase in the number of firms producing in this industry. If the government wants to maintain the same amount of pollution that existed prior to the entry of these firms, how should it adjust the number of permits issued? Provide a well-labelled graph and explain.
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