In a cap and trade system, who has the most incentive to develop pollution abatement technologies?
A) The polluters, since they will have to buy permits to pollute over a certain amount.
B) The government, since they are responsible for setting up the system.
C) The people that directly suffer from the pollution, since they are the ones who are negatively affected.
D) The consumers, since they are the final users of the product.
Correct Answer:
Verified
Q16: FIGURE 12-1 Q17: Which of the following is NOT a Q18: Why are negative externalities difficult to internalize Q19: Why might zero pollution NOT be the Q20: What is the most likely outcome when Q22: Since it is nearly impossible to measure Q23: What is an advantage of using a Q24: Which of the following firms is most Q25: FIGURE 12-3 Q26: The Coase theorem suggests that a private
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