1. Some opponents of tradable emissions permits object to them on the grounds that polluters that sell their permits benefit monetarily from their contribution to polluting the environment. Assess this argument.
This is a misguided argument. Allowing polluters to sell emissions permits makes polluters face a cost of polluting: the opportunity cost of the permit. If a polluter chooses not to reduce its emissions, it cannot sell its emissions permits. As a result, it forgoes the opportunity of making money from the sale of the permits. So despite the fact that the polluter receives a monetary benefit from selling the permits, the scheme has the desired effect: to make polluters internalize the externality of their actions.