00:01
Hello, in this video i will answer, would sales of pollution rights or certificates be an efficient means of allocating a given amount of pollution? so what is sales of pollution? sales of pollution is when firms are allowed to buy or sell licenses granting the holder.
00:54
The right to create a certain amount of pollution.
01:06
I'm so sorry.
01:16
That scared me too.
01:17
Create a certain amount of solution.
01:26
So that leads us to whether it's efficient or not.
01:32
And first we should see or the advantages and whether it's effective or not.
01:44
So some advantages would be it creates the opportunity of efficient exchange.
01:52
So there is definitely efficient exchange, meaning it's constant pollution.
02:06
So if one person sells it, another person buys it, keeping the pollution constant, going from one place to another.
02:15
However, it is less effective than taxation...