Under a system of marketable pollution permits the government
A) chooses a level of pollution.
B) distributes permits to polluting firms.
C) allows firms to trade permits.
D) all of the above

Question

Quizplus · Accepted Answer

Under a system of marketable pollution permits, the government chooses a level of pollution, distributes permits to polluting firms, and allows firms to trade permits. This allows for more efficient use of resources and incentivizes firms to reduce their pollution levels.

Under a System of Marketable Pollution Permits the Government