Marketable permits are a market solution to pollution abatement which work best when a. all firms have the same valuation for pollution. b. the location of pollution matters. c. the government knows the right quantity of pollution abatement. d. some fi rms have already invested heavily in abatement equipment while others have done  nothing.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 9SCQ: The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the...
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8. Marketable permits are a market solution to pollution abatement which work best when
a. all firms have the same valuation for pollution.
b. the location of pollution matters.
c. the government knows the right quantity of pollution abatement.
d. some fi rms have already invested heavily in abatement equipment while others have done 
nothing.  

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