The first problem encountered when trying to institute a cap-and-trade program is
A) assigning a regulatory agency to oversee the program.
B) establishing a market for permits.
C) setting the price for permits.
D) the initial distribution of the permits.

Question

Quizplus · Accepted Answer

The first problem encountered when setting up a cap-and-trade system is the initial distribution of the permits, as it involves deciding how many permits to issue and how to allocate them among the participants. This step is crucial for the effectiveness and fairness of the program.

The First Problem Encountered When Trying to Institute a Cap-And-Trade