Which statement best describes a cap and trade program?
A) an emissions control policy and market incentive that limits an industry's emission allowance and allows it to purchase emission permits from other lower emitting industries.
B) a program that gradually reduces the allowed emissions of an industry each year, incentivizing the industry's transition to zero emissions with tax breaks.
C) a policy that requires industries to cap their emissions by a specific deadline or give majority ownership to the state if they fail to accomplish this reduction.
D) an international attempt to reduce emissions by setting emissions quotas for each country and allowing each country to buy emission credits from others if they reach their limit.

Question

Quizplus · Accepted Answer

A cap and trade program is an emissions control policy and market incentive that sets a limit or "cap" on the total amount of emissions that an industry can release. Each company is given a certain amount of emissions allowances or permits which allows them to emit a certain amount of pollutants. If a company reduces their emissions below the allocated limit, they can sell or trade surplus permits to other companies who may find it more difficult to reduce their own emissions. This creates a financial incentive for companies to reduce their emissions below the cap and rewards those who are able to do so.

Which Statement Best Describes a Cap and Trade Program