Given several pollution sources within a given region. You have determined the level of pollutants that the environment can tolerate and need to design a regulatory system that guarantees that tis limit is never exceeded, even if the number of pollution sources increases. Which of the regulation methods (CAC, charges, or tradable allowances) would be the most cost-effective means of achieving the desired end? How might your choice change if some increase in emissions could be tolerated?
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