The primary advantage to selling pollution permits rather than using a fixed percent reduction for all firms is that:
A)the government can raise additional revenue.
B)pollution reduction is accomplished in the least costly way possible.
C)enforcement costs are eliminated.
D)pollution is driven to zero.

Question

Quizplus · Accepted Answer

The permits will be purchased by firms that have the highest cost of pollution abatement, so that firms with lower costs of abatement will make the reductions.

The Primary Advantage to Selling Pollution Permits Rather Than Using