Which of the following is, so far, the most utilized method to reduce emissions of industrial pollution to politically chosen levels, while encouraging efficient choices by polluters?
A) government pollution charges or taxes
B) non-tradable emission standards that cap allowable pollution for each emitter
C) cap and trade emission permits
D) regulations that would effectively prohibit all emissions

Question

Quizplus · Accepted Answer

Cap and trade emission permits have been the most utilized method to reduce emissions of industrial pollution to politically chosen levels, while encouraging efficient choices by polluters. This approach allows the government to set a cap on total allowable emissions and grant permits for a certain amount of emissions to companies. If a company can reduce their emissions below their allotted permit level, they can sell their excess permits to companies that are struggling to stay under their cap. This creates a market incentive for companies to reduce their emissions and rewards those who are able to do so efficiently.

Which of the Following Is, So Far, the Most Utilized