Asked by Margaret Galeener on May 03, 2024
Verified
If X transferable emissions permits are issued and there are n potential polluters,
A) the government must initially assign each of the potential polluters X/n permits.
B) the government must assign X/n permits to each potential polluter and check periodically that those permits have not moved.
C) emissions will be the same whether or not the permits are split equally, so long as none of the permits are issued outside the group.
D) emissions will be the same no matter who receives them first, so long as the recipient is willing and able to participate in the permit market.
E) emissions will be less if the permits are given initially to firms with lower abatement costs.
Transferable Emissions Permits
Transferable emissions permits are allowances granted by a governing body that permit the holder to emit a specific amount of pollution; these permits can be bought and sold in a market, aiming to reduce overall pollution efficiently.
Potential Polluters
Potential polluters are individuals, companies, or other entities that are capable of releasing pollutants into the environment, necessitating regulatory oversight and pollution control measures.
- Acquire knowledge about the methods and consequences of diverse environmental regulations, namely emissions thresholds, tariffs, and transferable allowances.
Verified Answer
BS
Barrington SaintMay 09, 2024
Final Answer :
D
Explanation :
Transferable emissions permits allow for flexibility in who holds them, as the total emissions are capped by the number of permits issued, not by who initially receives them. This system relies on the market to allocate permits efficiently, meaning emissions will be consistent with the total permits available, regardless of initial distribution.
Learning Objectives
- Acquire knowledge about the methods and consequences of diverse environmental regulations, namely emissions thresholds, tariffs, and transferable allowances.