A-level Paper 1, November 2020Markets and Business Behaviour

A-level Paper 1, November 2020, Q3(b)

Regulation of firms that pollute is likely to be a problem because it

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Context

The EU tradable pollution permits scheme is expected to become more effective by 2020, due to recent reductions in the number of tradable pollution permits.

Aallows firms to use price signals
Bcreates unintended consequences
Cfills information gaps for businesses
Dmeans lower administrative costs

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