Benefits to pollution reduction to entirely disappear

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Suppose a permit case like in textbook with m_1 > m_2 and the cost of reducing emissions equal to m_1/2 e^2. Suppose also that the firms must borrow to pay for permits at firm specific interest rates r_1 and r_2. Give a condition for the benefits to pollution reduction to entirely disappear.

Reference no: EM131392466

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