Question

The Clean Air Act Amendments of 1990 authorize the assignment of permits to corporations allowing a predetermined level of sulfur dioxide emissions. Permit holders that keep emissions below the permit level may

A: charge a higher price for generated power.
B: sell their unused emission rights to another corporation.
C: receive tax rebates.
D: receive a lower emission permit in the future.

Answer 1

Permit holders under the Clean Air Act Amendments of 1990 can sell their unused emission rights to another corporation.

Step-by-step explanation:

The Clean Air Act Amendments of 1990 authorize the assignment of permits to corporations allowing a predetermined level of sulfur dioxide emissions. Among the options provided, permit holders that keep emissions below the permit level can sell their unused emission rights to another corporation. This marketable permit system is designed to reduce total emissions over time. For example, a permit may allow the emission of a certain amount of pollution one year but would allow less in subsequent years. These permits, in addition to being shrinkable, are also tradable, which means that firms have the flexibility to buy and sell them on the market.