Market-Oriented Environmental Tools

Read this section to learn more about how permits and the Coase theorem can be applied to solve environmental problems by defining user and property rights in society. Make sure to answer the "Try It" questions.

3. Applying Market-Oriented Environmental Tools

3.1. Try It

In a market with a few firms with various levels of pollutant release, the appropriate regulatory approach would be ________.

  • tradable permits
  • tax and regulation
  • command and control