Suppose the federal government determines the total level of municipal sewage that can be discharged by cities along a river. If the cities are able to buy and sell rights to the total discharge level among themselves, then the government's environmental policy includes:
A) emissions taxes.
B) regulations.
C) tradable pollution permits.
D) command and control.

Question

Quizplus · Accepted Answer

The government's policy includes tradable pollution permits, which allow cities to buy and sell rights to discharge sewage, creating a market for pollution rights.

Suppose the Federal Government Determines the Total Level of Municipal