Jodie Beggs:
This video goes through the logic of a tradable permits system for pollution reduction (as compared to a command-and-control policy) and shows how tradable permits (also known as cap and trade) can lower the cost to society of pollution reduction. The problem is taken from Principles of Microeconomics by Dirk Mateer and Lee Coppock, and is Ch. 7 problem #8.
Whatever happened to Cap’n Trade? I feel more supportive of anthropomorphized economic principles.
Unfortunately Cap’n Trade met his kryponite at the hands of the evil villain Senit. Senit is known for his use of mindnumbing drugs (known as Senit Procedure) to counter the obvious powers of Cap’n Trade. Cap’n Trade remains trapped in his Ivory Tower, hoping to be rescued by his allies Pareto Optimus and Common Sense, before the planet is doomed.
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