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ABSTRACT: In many settings, markets can be a highly resultive way to organize an economy, efficiently making the most of economic resources. In such a network, agents compare private benefits and private costs, ignoring such external costs of their operations as contamination. There is now a vast literature comparing and contrasting these approaches to controlling contamination. However, the pattern analysis in this literature has tended to take the region, and the administration, as a given. Consequently, it has tended to neglect important distinctions between the geographic scope of different pollutants, the enforcement authority of various levels of administration, the fiscal authority of various levels of administration, and the communications among these factors.

JEL: A19, E42, E44

ROSSANA MALITZA
CEFAR, Black Sea University Foundation
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ELENA PADUREAN
Senior Researcher, Romanian Academy
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