The advantage to selling pollution permits rather than using a fixed percent reduction for all firms is

Question

Quizplus · Accepted Answer

Selling pollution permits allows for firms to make reductions in pollution in the most cost-effective way possible. This incentivizes firms to find ways to reduce their pollution while keeping their costs low. On the other hand, a fixed percent reduction for all firms may not take into account the varying levels of difficulty and costs for each firm to reduce pollution.

The Advantage to Selling Pollution Permits Rather Than Using a Fixed