Provide an argument in support of incentive programs

Question

Predict the effects of pollution permits on poor, less-developed areas like Brazil's "valley of death."

The pollution permits have a negative effect the valley of death areas because it

1. It is so difficult to tell or know the number of permits to issue to the industries that have applied because it may allow too many industries in a small area thereby increasing pollution levels

2. It is also hard to quantify the pollution levels and also the chance of falsifying the pollution levels is high

3. The Administration costs of implementing the policies of controlling pollution is very high

Assess the effectiveness of incentive programs on manufacturers in less-developed areas.

Incentive	Example	ADVANTAGES AND DISADVANTGES
Reduction of Pollution Charges and Taxes	Emission fee Solid waste Sewage fee	Pros: It helps stimulate technology to a higher level And also important when damage per unit varies with the quantity of pollution Cons: It requires real monitoring data for the sake of correct reporting
Input or Output Tax and fees	Carbon tax Fertilizer tax Water user fee	Pros: It is simple to manage and doesn't require monitoring data Cons: It is uncertain environmental effects
Marketable Permits	Emissions Effluents Fisheries access	Pros: provides control or a limit to pollution levels since it is easy to quantify levels of pollution Cons: potentially high transaction costs; requires variation in marginal control costs

Based on your assessment, provide an argument in support of either pollution permits or incentive programs.