🧪 Economics Environmental Economics Simulation

This simulator models the core mechanism of environmental economics: a market of firms with different marginal costs of cutting one ton of CO₂, deciding whether to abate or pay, under either a government-set carbon tax or a government-set emissions cap traded as permits. Firms render as 3D bars sorted by abatement cost with a price plane sweeping through them — green bars abate because their cost sits below the price, amber bars find it cheaper to pay. Live readouts track abatement, government revenue, and — the key policy lesson — how much cheaper the market-clearing allocation is than a uniform mandate forcing every firm to cut the same share regardless of cost, the textbook case for price-based climate policy over blanket regulation.