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.

---

Definitions:

Arbitrary Contest Resolution

A method of determining the outcome of a conflict among animals or individuals using signals or behaviors that do not directly relate to the physical strength or dominance of the participants.

Resource-Holding Potential

The ability of an organism to defend resources such as food, territory, or mates against competitors, which can affect its reproductive success.

Territorial Disputes

Conflicts between individuals or groups over the possession or control of land or resources.

Payoff Asymmetry Hypothesis

The theory that the differing costs and benefits of a decision or action can influence the behavior of individuals in competitive and cooperative interactions.