Which of the Following Is an Advantage of Tradable Pollution

question 78

Multiple Choice

Which of the following is an advantage of tradable pollution permits?

• A)Each firm is allowed to pollute exactly the same amount.
• B)Revenue from the sale of permits is greater than revenue from a corrective tax.
• C)The initial allocation of permits to firms does not affect the efficiency of the market.
• D)Firms will engage in joint research efforts to reduce pollution.

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Definitions:

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