A government plans to introduce pollution permits in order to cut environmental damage. In which circumstances is this policy most likely to fail to bring about the reduction intended?
- AFirms within the scheme are required to have a sufficient number of permits to cover the amount of pollution generated in production.
- BFirms improve their technology to reduce the number of permits they require.
- CFirms that do not use all of their permits can sell some of them to other firms.
- DThe permits do not impose strict enough limits on carbon emissions.