How are tradable pollution permits used
A)They are permits bought by firms where prices are set by the government.
B)They will be bought by firms that can reduce pollution only at high costs.
C)They will be bought by firms that can reduce pollution at low costs.
D)They will be used in reducing pollution when corrective taxes cannot be used.

Question

Quizplus · Accepted Answer

Tradable pollution permits are typically bought by firms that face high costs in reducing pollution, as it is more cost-effective for them to purchase permits rather than invest in expensive pollution control technologies.

How Are Tradable Pollution Permits Used