When new technologies make cleaner production possible,
A) emissions fees rise.
B) emissions fees fall.
C) the price of transferable permits rises.
D) the price of transferable permits falls.
E) the quantity of transferable permits falls.

Question

Quizplus · Accepted Answer

When cleaner production technologies are available, firms can reduce emissions more easily, decreasing the demand for transferable permits, which leads to a fall in their price.

When New Technologies Make Cleaner Production Possible