Unlike pollution taxes, what do pollution permits allow governments to do?
A) Remove the source of the externality.
B) Give preferential treatment to industries deemed essential.
C) Place the burden of the cleanup on polluters.
D) Set limits on the amount of pollution generated.

Question

Quizplus · Accepted Answer

Pollution permits allow governments to set specific limits on the amount of pollution that can be generated by a particular industry or company. This incentivizes companies to reduce their pollution output and can ultimately lead to an overall reduction in pollution levels. The other options listed are not directly related to the function of pollution permits.

Unlike Pollution Taxes, What Do Pollution Permits Allow Governments to Do