Tradable permits work well in the case of

Question

Quizplus · Accepted Answer

Tradable permits have been successfully used to regulate sulfur dioxide emissions, as seen in the Acid Rain Program established in the United States in 1990. The program set a cap on total sulfur dioxide emissions from power plants and allowed companies to trade permits amongst themselves, providing an incentive for companies to reduce emissions in a cost-effective manner. Tradable permits may not work as well for other types of pollution, such as global warming, which is a more complex and global issue.

Tradable Permits Work Well in the Case of