Which example illustrates an environmental policy that uses tradable pollution permits?
A)a charge of $0.10 to automobile drivers for a given level of emitted emissions
B)paying automobile drivers $0.10 for each 10% reduction in automobile emissions
C)allowing automobile drivers to buy and sell the right to emit a certain level of automobile emissions
D)ignoring pollution and letting private markets operate without government interference

Question

Quizplus · Accepted Answer

Tradable pollution permits allow industries or individuals to buy and sell the right to emit a certain level of pollution. Therefore, option C is the only example that illustrates a policy that uses tradable pollution permits. Options A and B involve government charges and incentives, respectively, but do not involve trading permits. Option D suggests a lack of government intervention, which does not relate to policy measures that use tradable pollution permits.

Which Example Illustrates an Environmental Policy That Uses Tradable Pollution