Assume the federal government determines the total level of pollutants that can be discharged by city industries.A city is able to exchange the rights to this total discharge level with other cities.This is an example of:

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The city's ability to exchange the rights to the total discharge level with other cities is an example of tradable emissions permits. This system allows for flexibility and incentivizes companies to reduce their pollution levels in order to sell excess emission permits to other cities or companies.

Assume the Federal Government Determines the Total Level of Pollutants