Marketable pollution permits increase the amount of pollution generated because firms that don't want to reduce pollution can buy the right to pollute.

Question

Quizplus · Accepted Answer

Marketable pollution permits aim to cap overall pollution levels while allowing firms flexibility in how they comply. Firms can trade permits, incentivizing reductions where it's most cost-effective, potentially leading to overall pollution reduction or stabilization, not an increase.

Marketable Pollution Permits Increase the Amount of Pollution Generated Because