Marketable pollution permits are a method of government intervention to prevent externalities whereby a government-issued permit allows a firm to pollute the environment

Question

Quizplus · Accepted Answer

Marketable pollution permits allow firms to pollute the environment by a specified amount, which is determined by the government issuing the permit. This system allows for a limited amount of pollution to be released while also providing a financial incentive for firms to reduce their pollution levels in the long term.

Marketable Pollution Permits Are a Method of Government Intervention to Prevent