Assignment:
Economists favor market-based policies (for example, pollution taxes and tradeable permits) over command-and-control policies (for example, performance standards). Despite the advantages of market-based policies, command-and-control policies are more frequently implemented. However, a well-known application of a tradeable permits policy is Title IV of the Clean Air Act. In order to control acid rain, sulfur dioxide (SO2) allowance trading program was developed in 1990. As a result of the program, SO2 declined by 50 percent between 1980 and 2000. Evaluate the SO2 program. In your answer, explain
(i) the program and the motivation behind its development,
(ii) lessons learned from the program in terms of implementation,
(iii) reasons for the program's success and
(iv) identify how the program can be applied to other environmental issues. Use empirical evidence and scholarly articles to support your answers.
Attachment:- CAA 1990 portion.rar