One of the Ways That Initial Pollution Rights Can Be

question 30

Multiple Choice

One of the ways that initial pollution rights can be allocated in a cap-and-trade program is by equal distribution among all existing sources of a particular effluent. Which of the following is a reason that equal distribution of initial pollution rights among polluters is flawed?

• A) Existing firms within an industry vary in size.
• B) Firms in different industries may vary in value of output.
• C) This method does not reward those who have invested in emissions reductions already.
• D) All of the above.

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Definitions:

Dewatered Area

describes a region from which water has been removed, typically for construction or drainage purposes.

Upper Level

Refers to the higher layers of the atmosphere or any system, often used in meteorology or geosciences to describe phenomena occurring at altitude.

Groundwater Flow

The process by which water moves through the pore spaces or fractures in soils and rocks beneath the Earth's surface.

Water Table

The depth beneath the surface where the soil is completely filled with water.