Compared to the command and control approach to pollution control, the tradable emissions allowance system is
A) less efficient, because the tradable emissions allowance system gives firms the right to pollute a certain amount.
B) more efficient, because there are implementation and monitoring costs with the tradable emissions allowance system.
C) more efficient, because firms with low costs of pollution control would pollute the least and sell their extra permits to other firms with higher costs of pollution control.
D) less efficient, because it does not raise funds for the government whereas under the command and control approach, firms are penalized for non -compliance.

Question

Quizplus · Accepted Answer

The tradable emissions allowance system is more efficient because it allows firms with lower pollution control costs to sell their excess permits to those with higher costs, optimizing overall pollution reduction at lower costs across the board.

Compared to the Command and Control Approach to Pollution Control