She says we don't know the actual price that the tradeable permits will reach, not true. The price will converge at 2$. Toxic will purchase a permit at any price below 10 dollars, the transaction ceases to occur at 2 dollars, where the WTS for sludge is reached.
This is a problem in a book. Tradable permits only preferable to command and control when the politicians can be trusted not to simply flood the market with permits when powerful interest groups complain. Micro-economists want to price every externality under the sun, but having a government which can be an all knowing super man and can know exactly how many permits to issue, and even what markets to create, would be the same operation nightmare as having central planning comittees decide the level of output for all commodities.
Thank you! This was SO very helpful! Before watching this, I could NOT understand tradable pollution permits. Now I can!
U r really good
Thank you. I agree with other comments that it is better to restrict to 10 minutes using a simple table.
She says we don't know the actual price that the tradeable permits will reach, not true. The price will converge at 2$. Toxic will purchase a permit at any price below 10 dollars, the transaction ceases to occur at 2 dollars, where the WTS for sludge is reached.
Thanks, the video was help
This is a problem in a book. Tradable permits only preferable to command and control when the politicians can be trusted not to simply flood the market with permits when powerful interest groups complain.
Micro-economists want to price every externality under the sun, but having a government which can be an all knowing super man and can know exactly how many permits to issue, and even what markets to create, would be the same operation nightmare as having central planning comittees decide the level of output for all commodities.
you take way too long to go through this, speed it up and be more efficient, could have been a 5 min video and accomplished the same thing