If the Government Wanted to Efficiently Limit the Emission of Carbon

question 30

Multiple Choice

If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could

• A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market.
• B) appeal to firms' environmental conscience to pollute less.
• C) subsidize production.
• D) rely on the Coase Theorem.

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