The Pigouvian tax works by forcing polluters to pay for the costs they impose on others, to
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The Pigouvian tax works by forcing polluters to pay for the costs they impose on others, to “internalize the externality.” Explain how the cap-and-trade system also forces polluters to internalize the externality.
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Related Book For
Microeconomics
ISBN: 9781319105563
3rd Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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