How did the European Emissions Trading Scheme privatize a public good?
A)The system sold off government-owned firms to more efficient private owners.
B)European governments became less involved in the details of pollution reduction,allowing private citizens and firms to determine the appropriate levels of pollution.
C)European governments gave away environmentally friendly technology that had been developed using public funds.
D)The system regulated pollution emissions that occurred in each individual country.
E)The system divided up and distributed a pollution allowance to individual firms that were contaminating clean air.

Question

Quizplus · Accepted Answer

The European Emissions Trading Scheme privatized a public good by dividing up and distributing a pollution allowance to individual firms that were contaminating clean air. This allowed the private firms to trade pollution permits among themselves, essentially creating a market for pollution. This led to the privatization of what was previously a public good, clean air.

How Did the European Emissions Trading Scheme Privatize a Public