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Some Environmentalists Have Criticized Tradable Emission Allowances on the Grounds

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Essay

Some environmentalists have criticized tradable emission 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.


Definitions:

Consignor Ownership

Describes a situation where goods are given to another party (consignee) to sell, but the original party (consignor) retains ownership until the goods are sold.

Consignee

The party or entity that receives goods for sale, storage, or transfer but does not take ownership of those goods until they are sold.

LIFO Inventory Method

"Last-In, First-Out" is an accounting method for valuing inventory where the most recently produced items are recorded as sold first.

Physical Inventory

The process of counting all physical merchandise or stock in a business at a specific time to verify the quantities on hand.

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