The Emissions Trading Scheme Is Preferred by Economists Because

question 25

Multiple Choice

The emissions trading scheme is preferred by economists because:

• A) clean air is not like any other scarce resource and cannot be traded on the market.
• B) it treats the clean air as a limited economic resource which is owned by consumers and firms have to pay to use it.
• C) once the trading scheme is in place, the firms have no control over how to minimise their losses.
• D) it is up to the firms to decide on how much emissions they can produce.