The EPA's CAP program for SO₂ gave producers an incentive to look for cheaper ways of lowering emissions because A) an emissions rate was mandated for firms and the penalties were high. B) increasing scarcity of permits drove their price up. C) offset trading offered large trade gains. D) emissions taxes were enforced with vigor.

Question

Quizplus · Accepted Answer

The increasing scarcity of permits in the EPA's CAP program for SO2 led to higher prices, incentivizing producers to find cheaper ways to reduce emissions to avoid buying expensive permits.

The EPA's CAP Program for SO2 Gave Producers an Incentive

The EPA's CAP Program for SO₂ Gave Producers an Incentive