Environmental Economics 7th Edition by Barry Field,Martha k Field

Exercise 2

Suppose there is a river on which are located several micro breweries, each of which discharges pollutants into the water. Suppose somebody invents a new technology for treating this waste stream that, if adopted by the breweries, could substantially diminish emissions. What are the impacts of this invention on ( a ) the actual level of emissions and ( b ) the efficient level of emissions?