Problem
Suppose in an emissions trading system the permits are allocated free of charge to emitters on the basis of how much they have historically emitted. Can that allocation be consistent with cost-effectiveness? Does your answer depend at all on whether this allocation scheme was announced well in advance of its implementation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.