Suppose that the government decides to issue tradable permits for a certain form of pollution. a. Does

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Suppose that the government decides to issue tradable permits for a certain form of pollution.

a. Does it matter for economic efficiency whether the government distributes or auctions the permits? Why or why not?

b. If the government chooses to distribute the permits, does the allocation of permits among firms matter for efficiency? Explain.

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:55 AM

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Suppose that the government decides to issue tradable permits for a certain form of pollution. a. Does

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a In terms of economic efficiency in the market for pollution it does not matter if the go...View the full answer

Principles of economics

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