- Karl Marx

The market exists of one producer, namely the market maker, who has the power to set the price of the products. In this case, the market maker decides how much an AQI product and the corresponding reward goes for. For example, by the end of the month May, the AQI in Rotterdam is set at 6.0 . This means that, according to Atlas Leefomgeving, the state of air quality is moderate. The market sets the price of 6.0 AQI at 22.000. In order to decrease the AQI from moderate to good, the AQI has to drop at least 3.0, which has a price of 12.000. To do this, the market is introduces trading in air quality. To make this trading attractive for companies, the market gives rewards. This means that, if a company’s investment is correct and comes true, it will get a monetary profit. The lower the AQI, the more profit the companies get.

AQI 6.0 (22.000) -> 3.0 (12.000) The total cost decreases by 10.000 euros.
6 x 0.5 = 3.0 -> 6 x 2.000 = 12.000