The green optima

Abstract

Pollution has become a major cause of concern for large cities in most parts of the world giving rise to increased health costs. The thesis tries to study pollution taxes and how they are theoretically justified in being used as effective policy instruments. It tries to analyze the general theoretical construction of the externality tax and proposes certain revisions that planners can consult. The control of fuel markets is linked to such pollution and allowing reform will reduce such inefficiency and externality costs through the free market mechanism. Also, the constitutional framework for putting together this reform is entirely based on the valuation of the externality and the good by a state and its people.