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