The structure of environmentally distorted markets (EDM) and its associated environmental pollution production problem (EPOP) has been recently stressed. It can be used to indicate the aspects where the environmentally distorted market supply (EDMS) cuts the demand (D) we have an environmentally distorted market (EDM), a market cleared by the environmentally distorted market price (EDMP), where production and consumption of the environmentally distorted quantity EDMQ takes place. The environmental pollution production problem (EPOP) associated with the level of economic activity. So if the goal is to address the environmental pollution production problem (EPOP) fully or partially we should expect the setting up of markets, but if the goal is to leave the need to solve environmental pollution production problem behind and focus our attention instead on resource use inefficiencies associated with environmentally distorted markets (EDM), then we should expect the setting up of markets. make the environmentally distorted market (EDM) stressed above be the environmentally distorted traditional market (EDTM) so that EDM = EDTM; and we make the environmental pollution production problem (EPOP) associated with the environmentally distorted market (EDM) be the same as the environmental pollution problem (EPOP) associated with the environmentally distorted traditional market (EDTM) so that EPOP = EPOP, then we can highlight the structure of the environmentally distorted traditional linear market (EDTM) a la Adam Smith (Smith 1776) where the environmentally distorted traditional linear market supply (EDTMS) cuts the demand (D) we have an environmentally distorted traditional linear market (EDTM), a market cleared by the environmentally distorted traditional market price (EDTMP), where production and consumption of the environmentally distorted traditional linear quantity EDTMQ takes place. We have the environmental pollution production problem (EPOP) associated with the level of traditional linear economic activity. It means that less environmental pollution production related to linear market contraction. So if the goal is to address the environmental pollution production problem (EPOP) associated with the environmentally distorted traditional linear market fully or partially, we should expect the setting up of markets, markets that leave the economic thinking valid behind, but if the goal is to leave the need to solve environmental pollution production problem behind and instead focus our attention on resource use inefficiencies associated with environmentally distorted traditional linear markets (EDTM), then we should expect the setting up of markets. For example sustainable development models consistent with sustainable development thinking a la Brundtland Commission as well as green markets and dwarf green market models consistent with the need to fully fix or partially fix the environmental sustainability problem since 2012 Rio + 20. More production and consumption of environmentally distorted traditional market goods (EDTMQ) takes place; and ii) this means that the environmental pollution production problem. Then less production and consumption of environmentally distorted traditional market goods (EDTMQ) would take place; and ii) this means that the environmental pollution production problem is less severe and curve D); and however, iii) this scenario would not be possible as traditional linear markets are not in the business of producing at the highest cost possible, but at the lowest traditional cost possible so they do not have profit incentives to contract traditional market activities to be environmentally friendly. However, if externality cost internalization addressing fully or partially the environmental pollution production problem depicted takes place or come into play, the traditional markets would shift to markets but if the concern about environmental pollution production problem are set aside and the focus goes to dealing with internal model issues such as resource use inefficiencies, then markets will come to exist, as the new economic paradigm doubles down on the core values of the previous economic paradigm in the name of market improvements. The idea that going to circular markets from linear market does not make sense from environmental friendliness point of view has been recently pointed out as the third development thinking blunder in terms of critical development problem solving thinking. D) The use of dwarf green markets and traditional circular markets and the nature of their environmental pollution production friendliness It can be said that the need to address the environmental pollution production problem associated with the environmentally distorted working of the traditional market a la Adam Smith directly has guided dwarf green market thinking since 2012 Rio + 20 to now as the idea of going perfect green market thinking was left behind creating a period of green market paradigm shift avoidance. These dwarf markets account for some of the environment cost associated with economic activity, contracting that way pollution production as supply and demand contract at higher dwarf green market prices.

Yes Osama, that it is my work and terminology but you do not show my name, the source, Lucio Muñoz. but thank you for sharing it.

Do have a view on what is the answer to the question here; why the AIT breaks down in dwarf markets? If yes, please share it,

The Arrow impossibility theorem does not directly apply in dwarf or niche markets like pollution management markets because these markets often operate under regulatory mandates, narrow objectives, and limited preference sets, which simplify aggregation and reduce the conflicting conditions that trigger Arrow’s paradox.

In short, they are no free markets under independent choice/preference as they work UNDER PERMANENT MARKET INTERVENTIONS