Write in a short paragraph. Explain environmental taxes and marketable permits as intervention strategies to achieve environmental sustainability

Answer 1

Environmental taxes and marketable permits are both intervention strategies aimed at achieving environmental sustainability. Environmental taxes are imposed on activities that generate pollution or cause harm to the environment. By increasing the cost of such activities, environmental taxes encourage businesses and individuals to reduce their impact on the environment, as they now have a financial incentive to do so. On the other hand, marketable permits create a market for pollutant emissions. The government sets a limit on the total amount of pollution that can be emitted, and then issues permits to companies allowing them to pollute up to a certain level. These permits can be bought and sold on the market, creating a market-based approach to reducing pollution. This system encourages companies to find innovative ways to reduce their emissions and allows more efficient firms to sell their unused permits to others. Both environmental taxes and marketable permits aim to internalize the costs of pollution, encouraging sustainable practices and reducing overall environmental impact.