What Is the Rationale Behind a Marketable Emission Allowance Scheme

question 95

Multiple Choice

What is the rationale behind a marketable emission allowance scheme?

• A)to create a market for externalities: the scheme brings together buyers and sellers of marketable permits
• B)to discipline polluting firms by specifying the maximum amount of emissions allowed and giving them permits to pollute up to their allowance
• C)to raise revenue for the government through the sale of emission permits and at the same time set an emissions target
• D)to provide firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance

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Definitions:

Statistically Significant

A term in statistical hypothesis testing used to denote that the results obtained are unlikely to have occurred by chance, at a specified level of significance.

Chance Variations

Chance variations refer to random changes that can affect outcomes in natural processes or experiments, often beyond the control of the participants.

Botany

Botany is the scientific study of plants, including their physiology, structure, genetics, ecology, distribution, classification, and economic importance.

Replication Studies

Research efforts designed to repeat the procedures of a study to verify its findings and ensure its reliability.