The prime motivation for low-pollutant firms to enter into the market for tradable allowances is profit.

Question

Quizplus · Accepted Answer

Low-pollutant firms may enter the market for tradable allowances to profit by selling their unused allowances to other firms. Additionally, they may also benefit from being able to increase their pollution levels without facing penalties, as long as they stay within their allotted allowance.

The Prime Motivation for Low-Pollutant Firms to Enter into the Market