Markets for the right to pollute are:

Question

Quizplus · Accepted Answer

Markets for the right to pollute are created by the government when it issues tradable pollution permits. This allows for a cap on overall pollution emissions and incentivizes firms to reduce their emissions in order to sell their excess permits. It can also encourage the development of technology that reduces pollution, as firms can benefit financially from selling their excess permits. Option A is incorrect as the creation of markets for the right to pollute is not solely done by individual firms, but rather the government. Option C is incorrect as markets for the right to pollute can actually incentivize the creation of technology that reduces pollution. Option D is incorrect as it goes against the purpose of creating markets for the right to pollute, which is to encourage firms to reduce their pollution emissions.

Markets for the Right to Pollute Are