When economists adopt a market-oriented strategy to deal with pollution:

Question

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Economists adopt market-oriented strategies to deal with pollution by internalizing the external costs of pollution by increasing the cost of pollution through taxes, fees or permits. By raising the cost of pollution, firms will have an incentive to reduce their level of pollution to avoid paying high costs. This approach aligns private costs with social costs and aims to reduce the negative impact of pollution on the environment and human health.

When Economists Adopt a Market-Oriented Strategy to Deal with Pollution