Q. When Marginal Savings are uncertain to the regulator?

1. A Marketable permit system with Subsidy for Emitting less than permitted and a Penalty for emitting more than permitted will perform better than either an emission fe alone or marketable permit system
2. A Emission Fee system with a subsidy for emitting less than permitted will perform better than either an emission fee alone or a marketable permit system alone.
3. A Emission Fees system with a subsidy for emitting less than permitted and a Penalty for emitting more than permitted will perform worse than either an Emission Fee alone or a Marketable Permit system
4. A Marketable Permit system with a subsidy for emitting less than permitted and a penalty for emitting more than permitted will perform worse than either an emission fee alone or a marketable permit sy