One of the Ways That Initial Pollution Rights Can Be

One of the ways that initial pollution rights can be allocated in a cap and trade program is by equal distribution among all existing sources of a particular effluent.Which of the following is a reason that equal distribution of initial pollution rights among polluters is flawed?

A) existing firms within an industry vary in size
B) firms in different industries may vary in value of output
C) this method does not reward those who have invested in emissions reductions already
D) all of the above