The Biggest Difference Between Using a Pigovian Tax or a Tradable

Multiple Choice

The biggest difference between using a Pigovian tax or a tradable allowance to correct for a negative externality is:

A) the government collect revenues from the tax, and the private parties trade quota rights on their own.
B) the tax creates an efficient outcome, and the tradable allowances do not.
C) the tax maximizes total surplus, but the tradable allowances do not.
D) All of these are differences between the two government policies.