Which of the following is not true with regard to pollution control through transferable pollution rights?
A)It does not require the government to know in advance the pollution abatement techniques to be utilized.
B)It creates an incentive to develop improved pollution abatement technologies.
C)It ultimately requires all firms to reduce pollution in equal amounts.
D)It established private property rights that can be sold.

Question

Which of the following is not true with regard to pollution control through transferable pollution rights?
A)​It does not require the government to know in advance the pollution abatement techniques to be utilized.
B)​It creates an incentive to develop improved pollution abatement technologies.
C)​It ultimately requires all firms to reduce pollution in equal amounts.
D)​It established private property rights that can be sold.

Quizplus · Accepted Answer

Transferable pollution rights do not necessarily require all firms to reduce pollution in equal amounts. The allocation of pollution rights can be based on various factors, such as historical emissions or production levels. The goal is to provide an economic incentive for firms to reduce pollution, rather than to enforce equal reductions across all firms.

Which of the Following Is Not True with Regard to Pollution