Assume that there are several chemical firms in an industry, each one producing different levels of an effluent, whose damage to the environment depen
Assume that there are several chemical firms in an industry, each one producing different levels of an effluent, whose damage to the environment depends on the location of the firm. Compare the relative merits of using green taxes, tradable permits and controls as means of achieving the socially optimum levels of effluent from these firms.