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Government - Pollution Rights

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In the 1990s the Mobil Oil Corporation acquired the rights to increase their pollution by 900 pounds of sulfur-dioxide per day at their Torrance, California refinery. These rights were purchased from South Gate, California, at a price of $3 million after the latter acquired them from General Motors. As a result of this change, Mobil increased its output of noxious vapors in Torrance, California by 900 pounds per day. Do you think the environment was harmed as a result of the sale of these pollution rights? Explain.

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The solution is concise and to the point and explains the concepts very well. The solution is very easy to understand as well. Overall, an excellent response to the question being asked.

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First, the environment is harmed by any type of pollution. So, even if you are polluting some, you are harming the environment. Having said that though, in this ...

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