Tradable pollution permits are a(n):
A) tax system for internalizing pollution costs to the market.
B) subsidy system for charging consumers for the use of common property resources.
C) system of voluntary negotiations between polluters and damaged parties.
D) system of exchangeable licenses that enable the holder to pollute up to a specified amount during a given period.

Question

Quizplus · Accepted Answer

Tradable pollution permits are a market-based approach where permits are issued that allow the holder to emit a certain amount of pollution. These permits can be bought and sold, providing economic incentives for reducing emissions.

Tradable Pollution Permits Are A(n)