Cost effective technologies to reduce pollution are most likely to result from
A) marketable pollution permits.
B) pollution charges.
C) taxes.
D) pollution limits.
E) quotas.

Question

Quizplus · Accepted Answer

Marketable pollution permits create a market where companies can buy and sell the right to pollute up to a predetermined limit. This creates an incentive for companies to reduce their pollution levels below their allotted limit and sell their unused permits, providing a financial benefit. In turn, this incentivizes companies to search for and develop cost-effective technologies that can help them reduce their pollution levels. Therefore, marketable pollution permits are most likely to result in cost-effective technologies that reduce pollution.

Cost Effective Technologies to Reduce Pollution Are Most Likely to Result