The article discusses how emissions taxes and trading can make companies use cleaner technologies to reduce pollution. By putting a price on emissions, these methods push firms to lower their pollution levels. The study finds that if the harm is increasing rapidly, taxes might need adjusting after new tech adoption. Also, if lots of companies are involved, adjusting permit supply works well for emissions trading. The research shows that both methods have their pros and cons, and to make trading effective, permits must change based on new technologies, especially when harm grows steadily.