Pollution rights may be traded if
A)pollution is harmless.
B)polluters try to hide pollution.
C)administrators are uncertain about Pigouvian taxes.
D)there is no market for pollution.

Question

Quizplus · Accepted Answer

Pollution rights can be traded in a cap-and-trade system, which is often used when there is uncertainty about setting the correct Pigouvian tax to internalize the externality of pollution.

Pollution Rights May Be Traded If