When dealing with a pollution problem,pollution permits are more efficient than taxes or command-and-control policies because
A) firms with low costs of abatement can buy more permits.
B) the government will generate more revenue from the sale of permits than through a pollution tax.
C) firms with high costs of abatement can buy more permits.
D) a pollution permit system will lead to all firms producing less pollution.

Question

Quizplus · Accepted Answer

Pollution permits allow firms with high abatement costs to buy permits from those with lower costs, leading to a cost-effective allocation of pollution reduction efforts.

When Dealing with a Pollution Problem,pollution Permits Are More Efficient