The Pigouvian tax works by forcing polluters to pay for the costs they impose on others, to

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The Pigouvian tax works by forcing polluters to pay for the costs they impose on others, to “internalize the externality.” Explain how the cap-and-trade system also forces polluters to internalize the externality.

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Microeconomics

ISBN: 9781319105563

3rd Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Feb 21, 2020 08:58 AM

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The Pigouvian tax works by forcing polluters to pay for the costs they impose on others, to

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Microeconomics

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