Tradable allowances for pollution:
A) allow firms to reduce pollution levels at lower costs.
B) decrease the availability of resources able to be utilized in other areas of production.
C) typically decrease firms' profits.
D) seem good in theory but have never been successfully enacted in market economies.

Question

Quizplus · Accepted Answer

Tradable allowances for pollution allow firms to reduce pollution levels at lower costs by incentivizing them to adopt cleaner technologies and reducing the overall costs of pollution control compared to traditional command and control regulations.

Tradable Allowances for Pollution