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State two conditions under which an environmental economist might not recommend an emissions trading program as...

State two conditions under which an environmental economist might not recommend an emissions trading program as an attractive environmental policy instrument. Explain your reasoning in each case.

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Answer #1

Condition 1 When the carbon tax is on a higher node. This can get to incur huge loss due to pollution and with this, the company has to reduce pollution costs and therefore, for this reason an economist would then recommend a attarctive trading program as an environmental policy instrument.

Condition 2 When the pollution levels are causing hecetic life damage, the economist suggests the government to go for environmental trading programs to encourage to companies to seek benefits if the pollution levels are low. This can get to reduce the I'll effects of pollution on the whole.

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