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As a Method of Pollution Control,tradable Emissions Permits,or "Cap and Trade

Question 106

Multiple Choice

As a method of pollution control,tradable emissions permits,or "cap and trade,"


A) are an example of paternalistic social regulation.
B) allow pollution to continue unabated,but only at a huge price to polluting firms.
C) are more effective than emissions taxes when pollution is hard to measure.
D) have the advantage of decentralized decision making (like emissions taxes) while also setting the maximum permissible level of pollution (like direct controls) .
E) are not a morally acceptable method of pollution control.

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