A Major Problem with Using Tradable Emissions Allowance System to Control

question 195

Multiple Choice

A major problem with using tradable emissions allowance system to control pollution is

• A) that it grants firms a license to pollute.
• B) the difficulty in determining the emissions target.
• C) it discourages firms from implementing cost-effective pollution control technology.
• D) that it does not eliminate pollution completely.

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Definitions:

Water

A clear, smell-free, flavorless fluid that constitutes the oceans, lakes, streams, and precipitation, and is foundational to the bodily fluids of living beings.

Price/Earnings Ratio

A valuation metric measuring a company's current share price relative to its per-share earnings, used to evaluate if a stock is over or under-valued.

Net Income

The profit of a company after all operating expenses, taxes, and interest are subtracted from total revenue.