Some environmentalists have criticized tradable emission allowances on the grounds that they give permit holders a license to pollute

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Essay 1: Some environmentalists have criticized tradable emission allowances on the grounds that they give permit holders a license to pollute. Furthermore, environmentalists argue that those who sell their permits receive a benefit from their contribution to polluting the environment. Use economic reasoning to evaluate this criticism.

Answer preview to Some environmentalists have criticized tradable emission allowances on the grounds that they give permit holders a license to pollute

The criticism against the tradeable emission allowances is inaccurate due to several reasons. Firstly, the criticism does not take into account a central rule of economics that resources are scarce (Hubbard & O'Brien, 2019). The criticism also ignores that in economics trade-offs exist. Therefore, capital or resources used in lowering one type of pollution will not

Last Updatd: 02 Aug,2023

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