Which of the following statements is TRUE? I. The EPA's tradeable allowances program for sulfur dioxide establishes property rights to pollute and helps reduce transaction costs by distributing allowances, maintaining databases, and monitoring emissions. II. One criticism of tradeable allowances is that they prohibit non-businesses and environmental groups from purchasing the allowances. III. The tradeable allowances for sulfur dioxide have performed poorly because electricity output has increased, causing a rise in sulfur dioxide levels.
A) I only
B) II and III only
C) I, II, and III
D) III only

Question

Quizplus · Accepted Answer

Statement I is true because the EPA's tradeable allowances program for sulfur dioxide is designed to establish property rights to pollute and reduce transaction costs. The program distributes allowances, maintains databases, and monitors emissions to achieve this. Statement II is not true because non-businesses and environmental groups can participate in the purchase of tradeable allowances. Statement III is not true because the tradeable allowances for sulfur dioxide have been successful in reducing emissions since their implementation in the 1990s.

Which of the Following Statements Is TRUE? I