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Why Should a System of Marketable Pollution Permits Lead to Less

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Why should a system of marketable pollution permits lead to less costly pollution abatement than a command-and-control system?


Definitions:

Binomial Experiment

A statistical experiment that meets the criteria of having a fixed number of trials, only two possible outcomes, independence between trials, and a constant probability of success.

Goodness-of-fit Test

A statistical test used to determine how well observed data fit the expected distribution.

Two-way Classification

A method of organizing data that involves two independent variables to understand the relationship between them and their impact on a dependent variable.

Chi-square Technique

A statistical method used to assess the differences between observed frequencies and expected frequencies in one or more categories.

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