When pollution rights markets are used,the overall level of pollution is reduced if the government sells additional licenses.

Question

Quizplus · Accepted Answer

The statement is incorrect. When the government sells additional licenses, it increases the total amount of pollution that is allowed, which can potentially increase the overall level of pollution. The reduction in pollution occurs when the government decreases the number of licenses or sets stricter regulations for emissions.

When Pollution Rights Markets Are Used,the Overall Level of Pollution