When the government issues marketable discharge permits, firms which are easily able to reduce emissions can sell unused permits to other firms that need an allowance.

Question

Quizplus · Accepted Answer

Marketable discharge permits allow firms that can reduce emissions at lower costs to sell their excess permits to firms facing higher costs of emission reduction, facilitating a more cost-effective overall reduction in pollutants.

When the Government Issues Marketable Discharge Permits, Firms Which Are