The Coal Market. Pollution, Taxes and Permits

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,

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.

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