A polluter will ________ its emissions and sell its excess permits on the market if the market price of permits is ________ its MAC at its chosen emission level.

Question

Quizplus · Accepted Answer

A polluter will reduce its emissions and sell its excess permits on the market if the market price of permits is greater than its Marginal Abatement Cost (MAC) at its chosen emission level, as this makes reducing emissions and selling permits more profitable than emitting more.

A Polluter Will ________ Its Emissions and Sell Its Excess