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    Economic Principles
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    Exam 8: Externalities, the Environment, and Public Goods
  5. Question
    Tradable Pollution Permits Allow Firms to Pollute Up to a Given
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Tradable Pollution Permits Allow Firms to Pollute Up to a Given

Question 7

Question 7

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Tradable pollution permits allow firms to pollute up to a given limit. What happens when firms do not reach their allowable pollution limit?

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Under the cap-and-trade policy, firms th...

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