Once tradable pollution permits have been allocated to firms:
a. the Coase theorem is no...
Business, 16.04.2020 00:35 alexandraschwartz21
Once tradable pollution permits have been allocated to firms:
a. the Coase theorem is no longer applicable as a solution to reducing pollution.
b. the government controls the price of permits.
c. the value of pollution-saving technology will be lower than the market value of a pollution permit.
d. firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.
Answers: 1
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