Economists generally favor the use of tradable emission allowances to reduce pollution.However, the use of these allowances has been criticized by some environmentalists.Which of the following describes this criticism?
A)Some environmentalists believe the allowances give firms a license to pollute.
B)Some environmentalists believe that the price of allowances is often too high for consumers to afford.
C)Some environmentalists believe that Pigovian taxes are a more efficient way to reduce pollution.
D)Some environmentalists oppose allowances on legal grounds; they believe the use of allowances is unconstitutional.

Question

Quizplus · Accepted Answer

Some environmentalists believe that the use of tradable emission allowances gives firms a license to pollute, meaning that they can continue to pollute so long as they have enough allowances to cover their emissions. This is seen as a loophole in the system and counterproductive to the goal of reducing pollution.

Economists Generally Favor the Use of Tradable Emission Allowances to Reduce