Answer the questions

1. Please consider the summary statement (Kolstad, page 300 #6)

Please discuss the following: “In a competitve permit market, the initial allocation of permits is not important. With market power on the part of the polluter, the initial distribution matters.”

2. Please answer the following question (Kolstad, page 281 #3)

“Discuss the following statement: Most pollution problems can be traced to disputes over property rights, imperfectly defined property rights, or ambiguously derfined property rights. Give examples to support your comments.”

Kolstad, Charles D. 2011. Environmental Economics. Second Edition. New York, NY: Oxford University Press.

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