The introduction of the carbon trading scheme which requires polluters to purchase permits will:

Question

Quizplus · Accepted Answer

The introduction of a carbon trading scheme, which mandates that polluters buy permits, effectively increases the cost of production for these polluters. This increase in production costs makes it more expensive to produce the same amount of goods, leading to a decrease in the overall supply. Graphically, this is represented by a leftward shift of the supply curve.

The Introduction of the Carbon Trading Scheme Which Requires Polluters