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Pollution Permits
Marketable permits allowing holders to emit a certain amount of pollution, used as a regulatory tool to control environmental impacts.
Corrective Tax
A tax designed to induce private decision-makers to take account of the social costs that arise from a negative externality.
Government
The system or group of people governing an organized community, often a state, with the authority to make and enforce laws, policies, and decisions.
Tradable Pollution Permits
A regulatory system that allows companies to buy or sell allowances for a specific amount of pollution, encouraging reduction in overall emissions.
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