Tennessee emits sulfur dioxide that flows into North Carolina. In meeting sulfur emissions regulations, the Tennessee Valley Authority (TVA), which produces electricity, buys sulfur emission permits from Wyoming. The resulting hot spot problem is:

Question

Quizplus · Accepted Answer

The emissions trading program may lead to a hot spot problem where emissions from one region are transferred to another, which becomes a "hot spot" with increased pollution levels. In this case, the sulfur dioxide emitted from Tennessee may flow into North Carolina, leading to higher emissions in North Carolina. Choice A is incorrect because it suggests that Wyoming will experience higher sulfur emissions, which is unlikely as the TVA is buying permits to reduce emissions. Choice B is incorrect for the same reason. Choice C is not necessarily true as the cost-effectiveness of emissions trading versus command-and-control approaches depends on a variety of factors.

Tennessee Emits Sulfur Dioxide That Flows into North Carolina