Under the Clean Air Act of 1990, private businesses and governmental agencies that succeed in keeping their emissions below the permissible limits dictated by the EPA [Environmental Protection Agency] can earn pollution credits. These can be sold to others who cant stay within limits or can be retired reducing future pollution. You are a state legislator of California and your state has accumulated a tremendous number of pollution credits. There is talk of using them as lures for new industry - if someone locates in your state, you will give them some of the pollution credits so that they may exceed limits.

Analyze each alternative with a cost/benefit analysis. Be broad in your thinking about costs and benefits to the various stakeholders. If you decide to eliminate any alternative after this analysis, please specifically identify that alternative and why you are eliminating it.

	Give pollution credits	Retire pollution credits	Sell credits out-of-state
Pros
Cons