Why were the European Emissions Trading Scheme credits given to existing companies,rather than auctioned off?
A)It was more efficient to give away the credits than to stage an auction.
B)The Europeans found out that firms could not afford to purchase the credits and pay for the technology to reduce emissions.
C)Consumers successfully lobbied to have the credits given out for free so that firms would not have to raise the prices of their products.
D)Firms successfully lobbied to have the credits given out for free so that they would not have to pay for them.
E)Lawyers raised legal and ethical questions about forcing firms to pay for the right to pollute.

Question

Quizplus · Accepted Answer

Firms successfully lobbied to have the credits given out for free so that they would not have to pay for them. Auctioning the credits would have created an additional cost for the companies, and they preferred to receive them for free. This led to a surplus of credits in the market, reducing their value and effectiveness in reducing emissions.

Why Were the European Emissions Trading Scheme Credits Given to Existing