Question: One way to avoid the EPA penalties for excessive air pollution is to use carbon credits. Carbon credits are a tradable permit scheme that allows

One way to avoid the EPA penalties for excessive air pollution is to use carbon credits. Carbon credits are a tradable permit scheme that allows businesses that cannot meet their greenhouse- gas-emissions limits to purchase carbon credits from businesses that are below their quota. By allowing credits to be bought and sold, a business for which reducing its emissions would be expensive or prohibitive can pay another business to make the reduction for it. Do you agree with this arrangement? How would you feel as an investor in a company that utilizes carbon credits to legally exceed its pollution limits?

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