environmental tools. We can view marketable permits as a form of improved property rights. Alternatively, the

government could combine marketable permits with a pollution tax on any emissions not covered by a permit.

12.4 The Benefits and Costs of U.S. Environmental Laws

LEARNING OBJECTIVES

By the end of this section, you will be able to:

• Evaluate the benefits and costs of environmental protection

• Explain the effects of ecotourism

• Apply marginal analysis to illustrate the marginal costs and marginal benefits of reducing pollution

Government economists have estimated that U.S. firms may pay more than $200 billion per year to comply

with federal environmental laws. That is a sizable amount of money. Is the money well spent?

Access for free at openstax.org
12.4 • The Benefits and Costs of U.S. Environmental Laws 291

Benefits and Costs of Clean Air and Clean Water
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