The government of Country X follows a cap-and-trade system of tradable emission allowances. Each steel manufacturing firm in this country is permitted to release a maximum of 30 million pounds of pollutants annually, but the firms can freely trade their emission allowances with each other. Clemington Inc., an iron and steel manufacturer in this country, releases 1.2 million pounds of airborne pollutants into the atmosphere every year and has been asked by the pollution control department to reduce pollution. Stella Morris, a director at Clemington Inc., strongly recommends that the board buy the allowances from other steel plants instead of curbing production. Which of the following, if true, would strengthen Stella's view?
(A) A shortage of pollution allowances has induced the government to impose restrictions on their trade. There is an excess demand for emission allowance in this industry due to which the government has imposed a restriction on their trade.
(B) The research team at Clemington Inc. discovers a new chemical, which, when mixed with iron ore, can reduce the pollution levels within the permissible limits.
(C) The cost of installing air scrubbers that would limit the release of pollutants is higher than the market price of the emission allowance.
(D) The government has also imposed significant restrictions on the mining of coal.
(E) Competitors of Clemington Inc. have earned higher profits after installing air scrubbers.