The Advantage of Selling Pollution Permits Rather Than Using a Fixed-Percentage

Multiple Choice

The advantage of selling pollution permits rather than using a fixed-percentage reduction for all firms is

A) that government raises additional revenue.
B) that reductions in pollution are accomplished by those firms that can do so at least cost.
C) that enforcement costs are eliminated.
D) that pollution is driven to zero.
E) an increase in the benefit to pollution reduction.