Microsoft MCPD Certification Exam 70-528

A Pigovian tax is considered one of the "traditional" means of bringing a modicum of market forces, and thus better market efficiency, to economic situations where externality 70-293 problems exist. More recently, particularly in the United States since the late 1970s, and in other developed nations since the 1980s, an alternative to Pigovian taxation has arisen: the creation of a market for "pollution rights." Pollution rights
markets are not generally 70-297 more efficient than Pigovian taxes but are often more appealing to policy makers because giving out the rights for free (or at less than market price) allows polluters to lose less profits or even gain profits (by selling their rights) relative to the unaltered market case. Markets for emissions trading have been set up to bring better 70-528 allocative efficiency and improved information sharing to the pollution externality problem. Pollution rights markets are a part of the field of Environmental Economics generally, and Free-market environmentalism specifically.