Economic Incentives And Friendly Environmental Technologies
General equilibrium models focus on the analysis of the difference between the allocation of efficiency and market equilibrium in the presence of environmental externalities affecting different sectors, as well as on the effectiveness of policy instruments. These approaches agree on economic incentives, such as Pigouvian taxes or permit sales, and on that they are better than CAC regulations. In including the option of pollution mitigating technologies there is an abuse of assumptions leading to improper conclusions
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