The primary purpose of tradable pollution permits is to

Question

Quizplus · Accepted Answer

Tradable pollution permits aim to reduce the cost of pollution control by allowing firms to buy and sell pollution permits on a market, encouraging them to invest in cost-effective pollution control measures. The permits also provide an incentive to reduce pollution as firms can sell their excess permits and generate revenue, which creates an economic motivation for them to reduce emissions. Tradable pollution permits do not aim to increase pollution to optimal levels, eliminate private costs, or completely eliminate pollution.

The Primary Purpose of Tradable Pollution Permits Is to