Social welfare can be enhanced by allowing firms to trade their carbon credits.

Name: Social welfare can be enhanced by allowing firms to trade their carbon credits.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Allowing firms to trade their carbon credits can incentivize them to reduce their carbon emissions, leading to a decrease in overall carbon emissions and an improvement in social welfare. It can also create a market for carbon credits that can provide economic benefits and encourage innovation in sustainable practices.

Social Welfare Can Be Enhanced by Allowing Firms to Trade