Question

Issuing tradable emission allowances to polluting firms will result in those firms polluting more than is...

Issuing tradable emission allowances to polluting firms will result in those firms polluting more than is socially desirable.

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False

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Answer #1

Answer

False

The tradable permits are issued equal to the social desirable pollution level and there is no polluting more than the desirable level.

The permits are cost-effective as it can be traded and the higher abatement cost companies pollute more and less cost reduce it more.

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