In a pollution rights market,

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In a pollution rights market, firms can buy licenses to pollute, which allows them to emit a certain amount of pollutants. They can also sell these licenses if they manage to reduce their emissions, creating an incentive for pollution control. Environmental groups can participate by buying licenses and not using them, effectively reducing the total amount of pollution. The government controls the level of pollution by adjusting the number of licenses issued.

In a Pollution Rights Market