Which of the Following Are True of Tradeable Pollution Permits

question 190

Multiple Choice

Which of the following are true of tradeable pollution permits?
(i) they will be sold by firms that can reduce pollution at low costs
(ii) the initial allocation of pollution permits does not matter
(iii) they are similar to using Pigovian taxes

• A)(i), (ii) and (iii)
• B)(iii) only
• C)(ii) and (iii) only
• D)(i) and (ii) only

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