Licenses that are exchangeable 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, also known as cap-and-trade programs, allow companies to buy and sell pollution permits. This system creates a market for pollution, setting a limit on the total amount of pollution that can be emitted, and allowing those who can reduce emissions more easily to sell their excess permits to those who struggle to do so. This incentivizes polluters to reduce their emissions and rewards companies who can reduce their emissions efficiently.

Licenses That Are Exchangeable and That Enable the Holder to Pollute