Marketable Emissions Permit Game

Emissions Permits

For each unit of the good that you produce, you must either submit an emissions permit or incur a cost to abate the pollution. You will be given one emissions permit. You must decide how many units to produce. If you choose to produce one unit, you will emit one unit of pollution and must relinquish your pollution permit. If you choose to produce two units, you must relinquish your pollution permit and you must pay the cost (on your card) to abate one unit of pollution. All permits held at the end of the period have no value and must be returned.