Recommend the major components that government must

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Imagine that the government has applied a cap-and-trade policy to auto emissions. From the e-Activity, propose the key steps that the government should take in order to implement such a policy. Suggest the major components that the government should consider when setting the caps and consider when selecting the asset that auto users will trade.

According to the textbook, society can either use corrective taxes to reduce air pollution or use the approach that the Coase Theorem suggests. Contrast the two (2) approaches. Select the approach that you believe to be more efficient, and provide a rationale for your response.

Reference no: EM13387836

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