In 1990, the Clean Air Act was amended to place a national cap on sulfur dioxide emissions, giving electric utilities an allowance of a set amount of emissions and allowing the utilities to trade their allowances. This type of plan is:
A. more efficient than direct regulation because utilities that receive a high marginal benefit from emissions can gain additional allowances through trade.
B. more efficient than direct regulation because it forces each utility company to reduce sulfur dioxide emissions by the same amount.
C. less efficient than direct regulation because utilities that receive a high marginal benefit from emissions can gain additional allowances through trade.
D. less efficient than direct regulation because it forces each utility company to reduce sulfur dioxide emissions by the same amount.