As a Method of Pollution Control,tradable Emissions Permits,or "Cap and Trade

question 59

Multiple Choice

As a method of pollution control,tradable emissions permits,or "cap and trade,"

• A)are more effective than emissions taxes when pollution is hard to measure.
• B)allow pollution to continue unabated,but only at a huge price to polluting firms.
• C)are not a morally acceptable method of pollution control.
• D)are an example of paternalistic social regulation.
• E)have the advantage of decentralized decision making (like emissions taxes)while also setting the maximum permissible level of pollution (like direct controls).

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