In Section 6.4.2.4, dealing with flexible permit systems with offsets, we explained the nature and role of

Question:

In Section 6.4.2.4, dealing with flexible permit systems with offsets, we explained the nature and role of offsets in marketable permit systems. But what is the motivation for offsets here? Why does the EPA not just extend the controlled group so as to get the benefits of cheaper abatement outside the group?

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