What are the Advantages of Trading Pollution Permits

-Schemes are a Good Way to Reduce Pollution to an Acceptable Level, as they Encourage Firms to become more efficient and Pollute Less -Firms can Benefit from Polluting Less as they can Sell the Permits and Expand the Revenue -Governments use the Money from the Fines to Invest in other Pollution Reducing Schemes -Schemes Internalise the Externality of Pollution - the Firms has to Deal with this