Suppose we have one hundred different firms emitting pollution. The Ministry of the Environment (MOE) currently regulates these firms by requiring specific pollution control equipment to be installed by each firm. The MOE is considering issuing tradable permits to each firm indicating how much pollution the firm may emit. Permits would be issued in such a way as to result in the same amount of pollution as the technology regulations. Discuss the implications of switching to tradable permits on the likelihood of seeing research and development to reduce the cost of pollution control.