Suppose There Will Be Global Catastrophe Unless We Hold Total

Multiple Choice

Suppose there will be global catastrophe unless we hold total carbon dioxide emissions at or below 35 million tons per year. As a result, each person on Earth is allocated 10 pounds of untradable emissions permits per year. Why would this be an inefficient solution?

A) Flexibility is not desirable.
B) Transaction costs are very high.
C) Everybody has the same cost of emissions abatement.
D) Different people have different costs of emissions abatement.