Which of these approaches to solving the tragedy of the commons is considered a market approach?

Question

Quizplus · Accepted Answer

The cap-and-trade approach to solving the tragedy of the commons is considered a market approach. In this approach, a cap is set on the amount of pollution that can be emitted, and permits to emit are then traded among polluters. This creates a market incentive for companies to reduce their pollution levels, as those who emit less than their assigned allowance can sell their permits on the open market. This approach allows the market to determine the most efficient way of reducing pollution, rather than relying on government regulations or coercion. Therefore, the correct choice is C.

Which of These Approaches to Solving the Tragedy of the Commons