The principal advantage of pollution permits is their incentive to minimize the cost of pollution control.

Question

Quizplus · Accepted Answer

Pollution permits create a market for pollution control, incentivizing companies to find the most cost-effective means of reducing their pollution. As companies can buy and sell permits, those that can reduce their pollution more cheaply than required can sell their excess permits, reducing the cost of overall pollution control.

The Principal Advantage of Pollution Permits Is Their Incentive to Minimize