The prime motivation for low-pollutant firms to enter into the market for tradeable allowances is profit.

Name: The prime motivation for low-pollutant firms to enter into the market for tradeable allowances is profit.
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Question

Quizplus · Accepted Answer

Low-pollutant firms can profit from trading their unused allowances to high-polluting firms or by reducing their own emissions and selling their excess allowances. Thus, profit is the prime motivation for them to enter into the market for tradeable allowances.

The Prime Motivation for Low-Pollutant Firms to Enter into the Market