8.81 Externalities, Public Goods, and Market Failures
0%
Skill Level🔴 Hard
00:00
Progress to Next Level25% to Medium
EasyMediumHardMastery100%

Passage

A port authority can measure particulate emissions from ships while docked but cannot observe fuel choices in real time. Firms have heterogeneous costs of switching fuels.

Which policy best fits the information and incentive constraints described?