An experiment from the book Experiments with Economic Principles by Theodore C. Bergstrom, Marcus Giamattei, Humberto Llavador and John H. Miller. The experiment and warm-up exercises are located in the econ-class experiments folder within classEx,
The Coal Market. Pollution, Taxes and Permits

In this experiment, students experience the effects of a negative externality, and explore how an appropriately chosen tax or a fix supply of marketable pollution permits may recover efficiency.