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Ethics problem
The environmental protection agency sometimes imposes penalties on firms that pollute the environment. But did you know that there is a legal market for pollution? A mechanism that has been developed to limit excessive air pollution is to use carbon credits. Carbon credits re a tradable permit scheme that allows businesses that cannot meet their greenhouse-gas-emissions limits to purchase carbon credits from 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 argument? How would you feel as an investor in a company that uses carbon credits to legally exceed it's pollution limits?
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