Maxicon is opening a new coal-fired power plant, but the government wants to keep pollution down. a.
Question:
a. Based on what we’ve seen in this chapter, which way is a more efficient way to reduce pollution: commanding Maxicon to use one particular air-scrubbing technology that will reduce pollution by 25% or commanding Maxicon to reduce pollution by 25%?
b. If a corrupt government just grants Maxicon all of the (tradable) pollution permits in the entire nation (even though there are many energy companies), does this guarantee that Maxicon will engage in an enormous amount of pollution? Why or why not?
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a Its better to command a low level of pollution than a particular method to reduce ...View the full answer
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