Assume the federal government determines the total level of pollutants that can be discharged by city industries. A city is able to buy and sell the rights to this total discharge level with other cities. This is an:
A) emissions tax.
B) Pigouvian tax.
C) tradable emissions permit.
D) environmental standard.

Question

Quizplus · Accepted Answer

This system is known as a tradable emissions permit, where cities can buy and sell the rights to emit a certain level of pollutants, allowing for flexibility and economic efficiency in meeting environmental goals.

Assume the Federal Government Determines the Total Level of Pollutants