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In Montana, there are some large deposits of water containing dissolved methane (fossil fuel). It is possible to pump this water out of the ground and release the methane, which can then be sold. This process produces lots of waste water, which poisonous properties, which is being dumped into nearby streams, which then flow onto the land of downstream ranches, severely damaging the land. Discuss this problem using the tools of public finance and propose two solutions, one involving taxes and the other involving property rights.

Microeconomics, Economics

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