Question

The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the table show three complaints about command-and-control regulation. Fill in the table by stating briefly how each market-oriented tool addresses each of the three concerns.

	Incentives to Go Beyond	Flexibility about Where and How Pollution Will Be Reduced	Political Process Creates Loopholes and Exceptions
Pollution Charges
Marketable Permits
Property Rights

Short answer

Market oriented tool addresses each of the concern in the following ways.

Step-by-step solution

Market-oriented tools :

It is the implementation of environmental rules that might provide an incentive for businesses to request flexibility in order to minimize pollution.

Explanation : 

	Incentives to Go Beyond	Flexibility about Where and How Pollution Will Be Reduced	Political Process Creates Loopholes and Exceptions
Pollution Charges	Charges can be reduced for the firms putting effort in cutting pollution	this gives flexibility to the firms that from where and how they would have to pay more or less of the charges.	the political process in pollution charges creates exceptions because of some bureaucrats.
Marketable Permits	If a firm is able to reduce the amount of pollution they create, they can sell the extra permits to other businesses and earn profits.	marketable permits also give them a chance that if they want to emit more or they would reduce the costs.	here also in marketable permits, the role of the political process creates many loopholes because of their corruption.
Property Rights	assigning prperty rights gives an incentive to find cost effective ways to tackle pollution	property rights also have flexibility but have some responsibility o pay for whose property is this.	political loopholes and exceptions are more there in property rights because of the nature of the work.