Explain: Without a market for pollution rights, dumping pollutants into the air or water is costless; in

Question:

Explain: “Without a market for pollution rights, dumping pollutants into the air or water is costless; in the presence of the right to buy and sell pollution rights, dumping pollutants creates an for the polluter.” What is the significance of this to the search for better technology to reduce pollution?

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...