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pollution tax
A(n) ________ changes the production process as firms switch to cleaner technology.
automobile
The ________ is by far the biggest source of smog- cause it is a pollutant.
technological innovation
A(n) ________ that decreases abatement costs will encourage firms to use the new technology to abate pollution rather than buying permits that allow pollution.
Ozone pollution
________, also known as smog, is one of our most persistent environmental problems.
Principle of Voluntary Exchange
The** ________** is a voluntary exchange between two people that makes both people better off.
supply curve
The ________ for permits is vertical at the fixed number of permits provided by the government.
Coase bargaining
In general, ________ requires a small number of affected parties and small transaction costs.
mill
The ________ dumps waste into the lake, and pollution degrades the fish habitat and decreases the fish harvest.
Gas mileage
________ varies across vehicles, and a person in a car with better gas mileage would pay less than the external cost of collisions.
Note 
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