The cap-and-trade program for regulating air pollutants by the U.S. government is an example of a(n) ____.

Question

Quizplus · Accepted Answer

The cap-and-trade program is an example of incentive-based regulation because it uses economic incentives to encourage companies to reduce their emissions. Under this program, companies are given a set amount of emissions they are allowed to release, and if they exceed that amount, they must purchase permits from companies that have emitted less pollution. This creates a financial incentive for companies to reduce their emissions in order to avoid having to purchase additional permits.

The Cap-And-Trade Program for Regulating Air Pollutants by the U