A policy to deal with carbon emissions that sets an allowable level and then permits power plants to buy and sell the right to pollute is commonly called

Question

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Cap and trade is a policy approach that sets a limit (cap) on emissions and allows companies to buy and sell allowances that permit them to emit a certain amount of pollution. This system incentivizes companies to reduce emissions in the most cost-effective way.

A Policy to Deal with Carbon Emissions That Sets an Allowable