In circumstances involving millions of emitters of small amounts of pollution who have no strong interest in trading, _______ will typically offer a better choice for achieving desired reductions of environmental pollution levels.

Question

Quizplus · Accepted Answer

Pollution charges are more effective in situations with many small emitters because they provide a direct financial incentive for each emitter to reduce pollution. Tradable permits are less practical in this context due to the complexity and lack of interest in trading among numerous small emitters. Enhanced property rights and ecotourism do not directly address the issue of widespread, small-scale pollution.

In Circumstances Involving Millions of Emitters of Small Amounts of Pollution