Under a transferable emissions permit system with n possible polluters,the government enforces the total amount of emissions allowable at X by

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Quizplus · Accepted Answer

With a transferable emissions permit system, the government issues a set number of permits (in this case, X) and each polluter is allowed to emit a certain amount based on the number of permits they hold. If a polluter wants to emit more than their allotted amount, they must purchase additional permits from other polluters who have not used up all of theirs. This system encourages polluters to reduce their emissions in order to sell their leftover permits to other polluters, creating a market for emissions reductions. This is the most efficient option as it allows the market to determine the price of emissions reductions and encourages polluters to reduce emissions based on their individual costs and abilities.

Under a Transferable Emissions Permit System with N Possible Polluters,the