Under the "cap-and-trade" system of controlling pollution, the selling of emission allowances or tradeable rights to...
Under the "cap-and-trade" system of controlling pollution, the selling of emission allowances or tradeable rights to pollute, will have the effect of,
A. increasing the amounf of pollution emissions
B. increasing the long-run cost of pollution control
C. decresing the long-run cost of pollution control
D. none of the above
Homework Answers
Solution: decresing the long-run cost of pollution control
Explanation: In "cap-and-trade" controlling pollution system the quantity of pollution emissions is capped. The cap often decreases over time thus giving a growing incentive for firms to reduce carbon emissions more efficiently
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