The primary purpose of tradable pollution permits is to

Question

Quizplus · Accepted Answer

The primary purpose of tradable pollution permits is to reduce the cost of pollution control. Tradable permits allow businesses to buy and sell permits to emit pollutants, which incentivizes them to reduce pollution to below their permitted level in order to sell excess permits and earn a profit. This market-based approach lowers the overall cost of pollution control compared to traditional command-and-control regulations. While reducing pollution to optimal levels may be a desired outcome, the primary goal is to reduce the cost of controlling pollution. Eliminating private costs is not a primary purpose of tradable pollution permits.

The Primary Purpose of Tradable Pollution Permits Is to