One of the topics we cover in the readings this week is pollution and in this assignment you have a...

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One of the topics we cover in the readings this week is pollution and in this assignment you have a chance to bring more focus to it. In a 3-4 page paper in APA format, describe and discuss how economic incentives could be used to reduce pollution, with emphasis on the incentives you think would be most effective. Include at least two scholarly references in your work.

Robert · Accepted Answer

Incentives to reduce Pollution
Running head: INCENTIVES TO REDUCE POLLUTION 1 
Incentives to reduce Pollution 
[Author Name(s), First M. Last, Omit Titles and Degrees] 
[Institutional Affiliation(s)] 
INCENTIVES TO REDUCE POLLUTION 2 
Incentives to reduce Pollution 
Pollution has become a cause for concern all over the world. Every country whether 
developed or developing has turned its attention towards the alarming levels of pollution and is 
looking for means and methods to bring the pollution under control. This paper discusses the 
various economic incentives that may be useful for reducing pollution. It also discusses the 
incentives which could be most effective. 
Regulatory methods have long been used to control pollution. However, the success of 
these methods has been limited. Economic incentives have recently come into play as 
Governments have realized the effectiveness of economic incentives. They have been proven to 
be more flexible and low cost methods (Anderson & Harrington, 1999). The main advantage of 
economic incentives is that they lie in sync with the business objective of earning profits and 
maximizing revenues.  
Marketable Permit systems 
These are marketable pollution permits which are issued to businesses. Marketable 
permits allow companies to pollute at a level that is marginally cost-effective. These permits 
even allow them to buy further permits as needed if they fail to meet their targets internally. The 
advantage of these permits is that the companies can sell excess permits if they exceed their 
internal pollution reduction targets. Thus, a financial incentive is created for the firms to pollute 
less since the excess limits can be sold to other firms. The Marketable permits can be either 
Emission Reduction Credits or Capped Allowance Systems. 
Under the ERC method, there is no set limit on the maximum allowable level of pollution 
within a regulated area. In its stead, pollution limits are rate-based.

One of the topics we cover in the readings this week is pollution and in this assignment you have a chance to bring more focus to it. In a 3-4 page paper in APA format, describe and discuss how...

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