The government can aid in reducing pollution by using a policy of cap-and-trade, which means that
A) polluters are taxed on the amount of pollution they discharge.
B) emission charges are established by the government.
C) each polluter is assigned a pollution limit and is given tradable permits that allow this amount of pollution.
D) only some producers pollute and the others go out of business.

Question

Quizplus · Accepted Answer

Cap-and-trade is a system where the government sets a cap on the total amount of pollution allowed and issues permits to polluters, which can be traded, allowing companies to buy or sell the right to emit a certain amount of pollution.

The Government Can Aid in Reducing Pollution by Using a Policy