Once Tradable Pollution Permits Have Been Allocated To Firms,

(Correct Answer Below)

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Once Tradable Pollution Permits Have Been Allocated To Firms,

ms, a. the government controls the price of permits. b. firms that can reduce pollution at high cost may buy pollution permits from firms which can reduce pollution at low cost. c. the value of pollution-saving technology is always lower than the market value of a pollution permit. d. the total amount of pollution governed by the permit will always decrease.
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b. firms that can reduce pollution at high cost may buy pollution permits from firms which can reduce pollution at low cost.

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