UPSC PRELIMS · ECONOMICS · CARBON MARKETS

Consider the following statements : Statement-I : Carbon markets are likely to be one of the most widespread tools in the fight against climate change. Statement-II : Carbon markets transfer resources from the private sector to the State. Which one of the following is correct in respect "of the above statements? (a) Both Statement-I and Statement-II . are correct and Statement-II is the correct explanation for Statement-I {b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect . but Statement-II is correct

Take a breath. Choose one. Press A–D on your keyboard if you like.

EXPLANATION

Carbon markets can be a major climate-policy tool, but they do not simply transfer resources from the private sector to the State; therefore only statement I is correct.

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