It has been proposed that a government agency be charged with the responsibility for determining the amount of pollution which the atmosphere or a body of water can safely recycle, and sell these limited rights to polluters.What would be the advantage of such a market for pollution rights?

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Quizplus · Accepted Answer

A market for pollution rights would create economic incentives for industries to reduce their pollution emissions in order to avoid having to purchase expensive pollution rights. This would result in a decrease in pollution because it would no longer be economically advantageous for industries to pollute. Additionally, the government agency responsible for setting the pollution limits would be able to ensure that a certain level of pollution reduction was achieved, thus allowing for the maintenance of an acceptable standard of air and water quality. Additionally, it is possible that the government agency could generate revenue from the sale of the pollution rights, but this is not the primary advantage of such a market. The elimination of pollution (Choice B) is not a realistic outcome, as some level of pollution is inevitable in any society. The social consciousness of people (Choice D) may or may not be raised as a result of such a market, but this is not the primary advantage of implementing one.

It Has Been Proposed That a Government Agency Be Charged