Microeconomics (2nd Edition) (Pearson Series in Economics)
Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 9, Problem 2P

A friend in your environmental economics study group suggests that taxes on pollution are ineffective because they do not eliminate all pollution. Based on the ideas from this chapter, explain what is wrong with this argument. Should the goal of any policy be to eliminate all pollution? If not, what should be the goal?

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