Do economists tend to favor a system in which power plants buy and sell the right to pollute in the form of emission credits?
A) No; these programs are ineffective because they encourage major polluters to free ride on the efforts of others.
B) No; it is possible for some firms to do nothing if they simply buy enough credits.
C) Yes; they encourage all firms to cut pollution by the same percentage.
D) Yes; they believe that such a proposal would achieve a level of pollution reduction with the lowest cost to society.

Question

Quizplus · Accepted Answer

Economists generally support emission trading systems because they allow for cost-effective pollution reduction by letting firms with lower abatement costs sell credits to those with higher costs, minimizing the overall cost to society.

Do Economists Tend to Favor a System in Which Power