Some Environmentalists Have Criticised Tradable Emissions Allowances on the Grounds

question 63

Essay

Some environmentalists have criticised tradable emissions allowances on the grounds that they give permit holders a license to pollute.Furthermore, environmentalists argue that those who sell their permits receive a monetary benefit from their contribution to polluting the environment.Use economic reasoning to evaluate this criticism.

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Definitions:

Level of Significance

A measure within hypothesis testing that determines the threshold at which the null hypothesis is rejected, often denoted by alpha (α).

Degrees of Freedom

Degrees of Freedom refer to the number of values in a calculation that are free to vary while still estimating certain statistical properties.

Between-Treatments

Pertains to the variations between group means in an experiment and is key to determining whether treatment effects exist.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution.