Abstract: The method of reducing emissions of a pollutant by relying on a novel endogenous futures market to set the pollutant emission fees. The individual marginal cost (m1) is known by actors, companies, individuals or actors for reducing one emission unit of the pollutant. The current market rate of the futures price (n1) for an emission unit is determined by the market. The emission fee (s1) during a certain time period (for instance; month) in the future is set by law or decree to be the same as the price of the futures contract on a certain expiry date in advance of the above mentioned time period to ensure genuine uncertainty of (s1).

Abstract: The method of reducing emissions of a pollutant by relying on a novel endogenous futures market to set the pollutant emission fees. The individual marginal cost (m1) is known by actors, companies, individuals or actors for reducing one emission unit of the pollutant. The current market rate of the futures price (n1) for an emission unit is determined by the market. The emission fee (s1) during a certain time period (for instance; month) in the future is set by law or decree to be the same as the price of the futures contract on a certain expiry date in advance of the above mentioned time period to ensure genuine uncertainty of (s1).