An advantage of tradable emissions permits is that:

A) pollution costs are easier to measure than are emissions taxes.
B) nondegradable pollutants can be more easily controlled than can degradable pollutants.
C) the value that future generations place on pollution damages can be determined.
D) they provide incentives for firms to develop technologies that are less polluting.

Tradable Emissions Permits

A market-based system that allows entities to buy or sell government-granted allotments of pollutants, promoting cost-effective pollution reduction.

Pollution Costs

entail the negative externalities or financial burdens on society resulting from environmental pollution.

Nondegradable Pollutants

Substances that do not break down naturally in the environment and can accumulate and cause harm over time.