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The Environmental Protection Agency sometimes imposes penalties on firms that pollute the environment. But did you know there is a legal market for pollution? For

The Environmental Protection Agency sometimes imposes penalties on firms that pollute the environment. But did you know there is a legal market for pollution? For example, a mechanism developed to limit excessive air pollution is the use of carbon credits. Carbon credits are a tradable permit scheme allowing businesses that cannot meet their greenhouse-gas-emissions limits to purchase carbon credits from businesses that are below their quota. By allowing credits to be bought and sold, a business for which reducing its emissions would be expensive or prohibitive can pay another business to make the reduction for it. Do you agree with this arrangement? How would you feel as an investor in a company that uses carbon credits to legally exceed its pollution limits

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