When a government establishes a marketable permit program to address environmental pollution, it is actually issuing a form of
A) command-and-control regulation.
B) pollution tax.
C) permit to pollute.
D) inflexible, costly regulation.

Question

Quizplus · Accepted Answer

A marketable permit program allows companies to buy, sell, and trade permits that grant them the right to emit a certain amount of pollution, effectively giving them a "permit to pollute." This approach is different from command-and-control regulation, which mandates specific limits and technologies, and from pollution taxes, which impose a cost on emitting pollutants. Marketable permits are designed to be flexible and cost-effective, allowing firms to find the most efficient way to reduce emissions.

When a Government Establishes a Marketable Permit Program to Address