The price at which marketable pollution permits are sold is set by the government.

Question

Quizplus · Accepted Answer

The price at which marketable pollution permits are sold is determined by the market forces of supply and demand, not by the government. The government's role is usually to set a cap on the overall level of emissions and to allocate permits to emitting firms. After that, it's up to the firms to decide how much they're willing to pay for permits and how much they're willing to reduce their emissions.

The Price at Which Marketable Pollution Permits Are Sold Is