The European Union Emissions Trading System works on what principle?
A) Thatcher's Theory of the Commons
B) pollute-and-pay
C) socialism
D) cap-and-trade
E) tax the richer companies more to pay for pollution control

Question

Quizplus · Accepted Answer

The European Union Emissions Trading System (EU ETS) is based on the principle of cap-and-trade. This means that a cap is set on the total amount of certain greenhouse gases that participating industries can emit. Each participant is allocated a number of allowances, which represents the right to emit a specific amount of these gases. Companies can then buy or sell these allowances depending on their needs, providing an incentive to reduce their emissions.

The European Union Emissions Trading System Works on What Principle