Question 1

Suppose your organization and a polluter company share the same natural resource (e.g., lake, river, land, etc.) and the polluter company holds the property rights. Your organization would experience certain damages due to the pollution created by the other company. How would your company be able to reduce the pollution and potential damage? How would both parties better off?

Question 3

What are the main differences between the Emission Tax and Emission Standard? If you were a government regulator, which one would you prefer? Explain your choice.