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Critically discuss whether taxes and subsidies can completely solve the issue of exposure to excessive levels of air pollution in all settings. Use economic theory and real-life examples to support your answer.
I would like to use Pigovian tax and Coase theorem, also I have already find three examples. 1. Denmark was one of the first countries to impose explicit CO2 taxes on both household and business energy consumption in 1992/1993.(tax)
2. Brazilian Emergency Thermal Power Plan(subsidy)
3. US Sulfur Allowance System(coase theorem)(the 1990 amended Clean Air Act was signed into law
by George Bush the elder. The Act, called for a reduction of emissions
to 10 million tons annually through the use of tradeable permits.)
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