Government allocation of pollution rights cannot be efficient if polluters cannot be easily identified and monitored.

Question

Quizplus · Accepted Answer

If polluters cannot be easily identified and monitored, it is difficult to accurately allocate pollution rights to them, which could lead to overallocation or underallocation of rights. Inefficient allocation can result in excessive pollution or unnecessary financial burden on some industries.

Government Allocation of Pollution Rights Cannot Be Efficient If Polluters