In a well-functioning cap-and-trade system for pollution rights, the right to pollute will go to those who are able to acquire the largest net benefit from using the scarce resource "clean air."

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Quizplus · Accepted Answer

This is true because in a cap-and-trade system, companies can buy and sell permits to emit a certain amount of pollution. Those who can reduce their emissions at a lower cost can sell their permits to those who find it more expensive to reduce their own emissions. This allows for market-based incentives to reduce overall pollution levels while still allowing businesses to operate and make a profit. The system allocates pollution rights to those who can use them efficiently, creating a net benefit for society as a whole.

In a Well-Functioning Cap-And-Trade System for Pollution Rights, the Right