The market approach in which governments grant tradable pollution and resource-use permits is similar to the cap-and-trade strategy.

Question

Quizplus · Accepted Answer

The market approach in which governments grant tradable pollution and resource-use permits is indeed similar to the cap-and-trade strategy, as both involve setting a limit (or "cap") on pollution or resource use and allowing companies to buy and sell permits to meet their needs. This creates a market incentive for companies to reduce their emissions or resource use in order to save money on permits, while also generating revenue for the government through the sale of permits.

The Market Approach in Which Governments Grant Tradable Pollution and Resource-Use