Which of the following best describes tradable emissions permits?
A) tax system for internalizing emission costs to the market
B) subsidy system for encouraging production of goods with positive externalities
C) system of voluntary negotiations between polluters and damaged parties
D) licenses that can be bought and sold and that enable the holder to pollute up to a specified amount during a given period

Question

Quizplus · Accepted Answer

Tradable emissions permits are licenses that can be bought and sold, allowing the holder to emit a certain amount of pollutants, thus creating a market for pollution rights.

Which of the Following Best Describes Tradable Emissions Permits