The success of compensatory laws rely on aligning the damages assigned to each polluter with

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Compensatory laws are designed to assign damages to each polluter based on the actual amount of injury they cause. This is important for creating a fair and just outcome, as polluters should be held accountable for the harm they cause to the environment and affected individuals or communities. Assigning damages based on marginal abatement costs, the amount of transaction costs, or the costs of clean up could lead to inequitable outcomes that do not accurately reflect the harm caused by each polluter.

The Success of Compensatory Laws Rely on Aligning the Damages