Total emissions from polluters decreases in a CAP program if
A) the total number of permits decreases
B) the marginal abatement cost of each polluter increases
C) the price of permits decreases each year
D) the CAP program expands to include additional types of pollutants

Question

Quizplus · Accepted Answer

The total emissions from polluters decrease in a cap-and-trade program if the total number of permits decreases. This is because the total number of permits represents the total allowable emissions under the cap. Reducing the number of permits directly limits the total emissions allowed, thus decreasing overall emissions.

Total Emissions from Polluters Decreases in a CAP Program If