One promising strategy for efficiently addressing the market failure that leads to environmental pollution is

Question

Quizplus · Accepted Answer

Tradable pollution permits provide an economic incentive for companies to reduce their pollution output, as those who can reduce pollution at a lower cost can sell their unused permits to companies who face higher costs. This system creates a market for pollution reduction and results in more efficient allocation of pollution reductions across the economy.

One Promising Strategy for Efficiently Addressing the Market Failure That