Effects of Pollution Permits
Predict the effects of pollution permits on poor, less-developed areas like Brazil's "valley of death."
The pollution permits have a negative effect the valley of death areas because it
1. It is so difficult to tell or know the number of permits to issue to the industries that have applied because it may allow too many industries in a small area thereby increasing pollution levels
2. It is also hard to quantify the pollution levels and also the chance of falsifying the pollution levels is high
3. The Administration costs of implementing the policies of controlling pollution is very high
Assess the effectiveness of incentive programs on manufacturers in less-developed areas.
Incentive Example ADVANTAGES AND DISADVANTGES
Reduction of Pollution Charges and Taxes • Emission fee
• Solid waste
• Sewage fee Pros: It helps stimulate technology to a higher level
And also important when damage per unit varies with the quantity of pollution
Cons: It requires real monitoring data for the sake of correct reporting
Input or Output Tax and fees • Carbon tax
• Fertilizer tax
• Water user fee Pros: It is simple to manage and doesn't require monitoring data
Cons: It is uncertain environmental effects
Marketable Permits • Emissions
• Effluents
• Fisheries access Pros: provides control or a limit to pollution levels since it is easy to quantify levels of pollution
Cons: potentially high transaction costs; requires variation in marginal control costs
Based on your assessment, provide an argument in support of either pollution permits or incentive programs.
I support the issuance of pollution permits because it is easy to monitor the number of industries that have been licensed to work in a given area and tell if the place is over infested with industries and the possible effects it will have on the environment and its locals. Above, the government can keep track of all statistics of emission levels from each industry and develop policies to control the industries and the licensing of more or less industries