While marketable pollution permits may ________ the total amount of pollution, they may ________ pollution in local areas.
A) increase; decrease
B) decrease; increase
C) decrease; not change
D) not change; increase

Question

Quizplus · Accepted Answer

Marketable pollution permits allow companies to buy and sell permits to pollute up to a certain level. This may effectively decrease the total amount of pollution as companies that can reduce pollution more easily sell permits to those for whom reduction is more costly. However, this system does not guarantee a decrease in pollution in all local areas. Companies can still continue to pollute in areas where they have permits, resulting in an increase in pollution for those particular areas. Therefore, while marketable pollution permits may decrease overall pollution, they may increase pollution in local areas where permits are used.

While Marketable Pollution Permits May ________ the Total Amount of Pollution