Environmental economics is consider
environmental issues.
It's considered some solutions:--
1. To control environmental problems and estimate
economic impact environmental economics needed. The cost-benefit
policy is used for controlling environmental problems. Pollution
tax is controlling environmental pollution. There are two processes
to control environmental problems one is command and another
control.
2. The quota is
used to control pollution. Quota is used in a trading system. In
the trading system, if quota is allowed then the firm reduces their
pollution only if the cost is less than paying by someone to make
the same reduction. Firms want to reduce their pollution by getting
trade permits.
3. Govt put taxes
and tariffs on pollution. If this amount increases then it
discourages pollution. This pollution tax can reduce pollution to
an optimal level that makes society beneficial.
4. Next is property
rights that are solved by the Coase theorem. This theorem states
that this solution can take an optimal point if transactional cost
trivial negotiation of the party is limited then it can work. If
the factory has the power to pollute society then they should pay
for this or make sure that it is not polluted.
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