A market for pollution rights is an efficient approach to pollution control because
A)It is cheap to implement
B)It leads to the complete elimination of pollution
C)It causes the pollution to be eliminated at the lowest cost
D)It is easy to enforce
E)None of the above

Question

Quizplus · Accepted Answer

A market for pollution rights allows firms to trade pollution permits amongst each other. This creates an economic incentive for firms to reduce pollution at the lowest possible cost, leading to more efficient pollution reduction methods. It is not cheap to implement, easy to enforce or leads to complete elimination of pollution.

A Market for Pollution Rights Is an Efficient Approach to Pollution