One advantage about an emissions permit system is that
A)it creates a "license to pollute," sure to be popular with environmentalists.
B)it reduces uncertainty about the quantity of pollution that will be emitted.
C)it is a direct control system and avoids the inefficiencies of a market.
D)permits can be handed out on the basis of need to protect firms from high costs.

Question

Quizplus · Accepted Answer

An emissions permit system reduces uncertainty about the quantity of pollution that will be emitted. This is because it sets a predetermined limit on the amount of pollution that can be emitted, ensuring that the total amount is within a safe level. It also incentivizes firms to reduce their emissions to below the limit so that they can sell or trade any unused permits, creating a market for emissions reduction. This system is generally more efficient than a direct control system because it allows for flexibility and innovation in reducing emissions.

One Advantage About an Emissions Permit System Is That