A System of Transferable Pollution Rights

question 107

Multiple Choice

A system of transferable pollution rights:

• A)​increases the quantity of pollution generated.
• B)​provides firms with an incentive to develop new pollution-abatement technologies.
• C)​is not as cost-effective in reducing pollution as a system based on compliance standards.
• D)​is characterized by none of the above.

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Definitions:

Bailees

Individuals or entities that have been given temporary possession but not ownership of a property under a bailment agreement.

Liability

A legal responsibility or obligation, often involving financial compensation for damage or harm caused.

Prudently

Acting with or showing care and thought for the future, typically in the management of resources or decision-making processes.

Repair Costs

Expenses incurred to fix or restore damaged or worn-out goods or property to their original condition.