What might be the efficiency problems with an approach

Reference no: EM131778590

Qusetion: A classic way of introducing pollution regulation in to an urban area is the "rollback" method. First, you determine the maximum tolerable level of particular pollutant, x_s. Next you find the maximum current concentration of that pollutant in the urban area x_m. Presumably, x_m > x_s (otherwise, there is no problem). Regulations then require all polluters in the city to reduce emissions from their current level of e_m to e_s = e_m(x_s/x_m). Explain how this will bring pollution levels down to an acceptable point What might be the efficiency problems with such an approach?

Reference no: EM131778590

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