Polluting Cars Could Soon Pay for Public Health Damages
The article explores how to reduce the negative effects of air pollution from cars by combining Pigou Tax and Coase Scheme. By changing the way we handle pollution, we can make things fairer for everyone. The researchers suggest a new method that can compensate for health issues caused by pollution and use market advantages to prevent harm. They show that by adjusting property rights and pollution rights, we can create a system where pollution is minimized. This new approach can help maximize social welfare and make buying a car better for society as a whole.