battery technologles to decrease emisslons.Other companies have invested nothing to decrease their emissions. Answer thefollowing questions to explain how the cap$-$and$-$trade program, if implemented successfully, will decrease emissions.

Je$э7$ ue

wDe W

$6$

a$.$ Using cap$-$and$-$trade, the government could restrict pollution by placing aemissions each company may emit through the issue of permits.

on the amount of

b$.$ One feature of the cap$-$and$-$trade policy is that permits can be traded between the "greener" companies that have alreadyinvested in emission lowering technologies and those that have not.

Greener companies will most likely

use as few permits as possible and sell their remaining permits to the "dirty" companies that need more permits toproduce the same amount of output.

use the minimum amount of permits they need but refuse to trade the remaining permits to other companies to punishthem for not cleaning up their act.

not get to purchase many permits because the less efficient companies will need to purchase more in order to keep theiloutput at the initial levelpurchase more permits because it allows them to expand output by a far greater amount than a "dirty" company, thusthey are worth more to a green company.