Market-Oriented Environmental Tools

5. Glossary

effluent (or pollution) charge:

a tax imposed on the quantity of pollution that a firm emits; also called a pollution tax

marketable permit program:

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

property rights:

the legal rights of ownership on which others are not allowed to infringe without paying compensation