Which of the following is an environmental policy based on tradable pollution permits?
A)a charge of 10 cents to automobile drivers for a given level of emitted emissions
B)paying automobile drivers 10 cents for each 10% reduction in automobile emissions
C)allowing automobile drivers to buy and sell the right to a certain level of automobile emissions .D.ignoring pollution and letting private markets operate without government interference

Question

Quizplus · Accepted Answer

Tradable pollution permits allow companies or individuals to buy and sell their right to emit pollutants up to a certain level. This incentivizes companies to reduce their pollution levels to sell their unused allowances to other companies that are struggling to do so, thereby creating a market-based mechanism to reduce pollution levels. Option A is a straightforward charge without any trading involved, while option B is a payment for a specific outcome and not a market-based mechanism. Option D ignores pollution and doesn't involve any policy measure.

Which of the Following Is an Environmental Policy Based on Tradable