Consider a situation where all firms are of identical size and each is allocated credits that allow
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Consider a situation where all firms are of identical size and each is allocated credits that allow it to produce 10 per cent less than its current emissions. How would this compare with a situation where permits are allocated to 90 per cent of firms only? Consider both efficiency and equity in your answer.
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In the first case There would be an efficient allocation of resources th...View the full answer
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