In order for a cap-and-trade system to work, it must be that pollution permits are bought by producing firms -- and not given to them as part of an attempt to prevent them to lobby against the cap-and-trade system

Question

Quizplus · Accepted Answer

A cap-and-trade system can still function effectively even if pollution permits are initially given to firms for free, as the key mechanism is the cap on total emissions and the ability of firms to trade permits. This initial allocation can help gain industry support and ease the transition.

In Order for a Cap-And-Trade System to Work, It Must