<h2>Key Concepts and Summary</h2>
<p>Examples of market-oriented environmental policies, also referred to as cap and trade programs, include pollution charges, marketable permits, and better-defined property rights. Market-oriented environmental policies include taxes, markets, and property rights so that those who impose negative externalities must face the social cost.</p>
<h2>Glossary</h2>
<h3>marketable permit program</h3>
<p>a permit that allows a firm to emit a certain amount of pollution; firms with more permits than pollution can sell the remaining permits to other firms</p>
<h3>pollution charge</h3>
<p>a tax imposed on the quantity of pollution that a firm emits; also called a pollution tax</p>
<h3>property rights</h3>
<p>the legal rights of ownership on which others are not allowed to infringe without paying compensation</p>

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Key Concepts and Summary

Economics studies social behavior guiding the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society, and for the production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. 

Economics

Discover how to apply market-oriented environmental tools, analyze the benefits and costs of clean air and water, and explore the tradeoff between economic output and environmental protection in this tutorial on environmental protection and negative externalities.


Environmental Protection and Externalities

Key Concepts and Summary

Key Concepts and Summary

Glossary

marketable permit program

pollution charge

property rights

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