he same logic applies to any voluntary transfer of the right to pollute from one firm to another. If the EPA allows firms to make these deals, it will, in essence, have created a new scarce resource: pollution permits. A market to trade these permits will eventually develop, and that market will be governed by the forces of supply and demand. The invisible hand will ensure that this new market efficiently allocates the right to pollute. The firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits. The firms that can reduce pollution at low cost will prefer to sell whatever permits they have.