Which of the following is an environmental policy based on tradable emission permits?
A)a charge to companies of $1 for 100 units of pollutants emitted
B)paying companies $1 for each 10% reduction in emissions
C)allowing companies to buy and sell the right to a certain level of emissions
D)ignoring pollution and letting private markets operate without government interference

Question

Quizplus · Accepted Answer

Tradable emission permits allow companies to buy and sell the right to a certain level of emissions, which incentivizes companies to reduce their emissions to sell their excess permits or to purchase permits if they need to emit more pollutants. Option A and B both involve government-imposed charges or payments and do not involve trading permits. Option D is not an environmental policy at all but rather a laissez-faire approach.

Which of the Following Is an Environmental Policy Based on Tradable