The licenses that are exchanged and that enable the holder to pollute up to a specified amount during a given period are called:
A)emissions taxes.
B)environmental standards.
C)tradable emissions permits.
D)Pigouvian taxes.

Question

Quizplus · Accepted Answer

Tradable emissions permits allow the holders to pollute up to a certain limit during a specific time period. Option A (emissions taxes) refers to a tax on emissions and not a permit to pollute. Option B (environmental standards) refers to regulations on the amount of pollutant emissions allowed and not a license to pollute. Option D (Pigouvian taxes) are taxes imposed on companies for harmful activities, not a license to pollute.

The Licenses That Are Exchanged and That Enable the Holder