How do we determine the "optimal" level of pollution? What are the advantages and disadvantages of emissions standards? How do economists determine the efficient level of a pollution tax? What are the advantages of a system of transferable pollution permits? How is the equilibrium price of a pollution permit determined? What is the difference between point and non-point pollution? Which one is more difficult to control? How can we determine if pollution taxes or tradable permits are the most appropriate policy for regulating pollution? What are the different ways to allocate tradable pollution permits? Which one is generally preferred? How will industries react to technology change with a pollution tax? How will they react with a system a transferable permits? What is the difference between a flow and a stock pollutant?