Question

Why would the government allow companies to buy and sell permits that allow companies to emit specified amounts of pollutants

Answer 1

To removes bias in the allocation of emissions rights.

Step-by-step explanation:

The government allow companies to buy and sell permits in order to removes bias in the allocation of emissions rights. These permits are given to the companies that allow other companies to emit a specific amount of pollutants from their industries. If there is no permits given to companies so these companies emits huge amount of pollutants which pollute the whole environment.