An advantage of tradable emissions permits is that:
A) pollution costs are easier to measure than emissions taxes.
B) nondegradable pollutants can be more easily controlled than degradable pollutants.
C) the value that future generations place on pollution damages can be determined.
D) they provide incentives for firms to develop technologies that are less polluting.

Question

Quizplus · Accepted Answer

Tradable emissions permits create a financial incentive for firms to reduce pollution, as they can sell excess permits if they pollute less, encouraging the development of cleaner technologies.

An Advantage of Tradable Emissions Permits Is That