Business, 14.04.2020 20:03 dargy

Suppose that the government decides to issue tradable permits for a certain form of pollution.
1) It is more economically efficient in the market for pollution for the government to distribute the tradable permits than to auction them off.
True or False?
2) If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth.
True or False?

Answers: 1

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Suppose that the government decides to issue tradable permits for a certain form of pollution.