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A Imagine That the State of Georgia Decides to Reduce

Question 176

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a. Imagine that the state of Georgia decides to reduce emissions from chemical plants by taxing the production of chemicals. Will this reduce chemical plant emissions in the state? Will your answer to this question depend on whether or not Alabama has a similar tax?
b. Will this tax protect Georgians from the negative externalities associated with these emissions? Will your answer to this question depend on whether or not Alabama has a similar tax?

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a. The tax will reduce emissions in Geor...

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