Which one of the following statements is false?

a. Technological progress will lower the price of transferable pollution permits
b. Under a pollution tax, technological progress will reduce overall pollution levels
c. Under a system of transferable permits, technological progress will reduce overall pollution levels
d. A pollution tax creates an incentive for technological progress
e. Under a system of transferable permits, technological progress can result in some firms increasing their pollution levels

Answer: c. Under a system of transferable permits, technological progress will reduce overall pollution levels