Under a system of marketable pollution permits, each firm would be issued a fixed number of permits. These could not be traded among firms.

Question

Quizplus · Accepted Answer

Under a system of marketable pollution permits, firms are allowed to trade permits with each other. This allows firms who can reduce pollution at a lower cost to sell their permits to firms who find it more difficult or expensive to comply with pollution regulations. This can lead to a more efficient and cost-effective reduction in pollution overall.

Under a System of Marketable Pollution Permits, Each Firm Would