Which of the Following Statements Is False

Which of the following statements is false?

A) Under an emission tax, a tax is set and then the quantity of permissible pollution is determined.
B) Under both emission taxes and tradable pollution permits polluters must pay to pollute.
C) One possible approach to dealing with the problem of environmental negative externalities is a policy of tradable pollution permits, also known as cap and trade.
D) Under a tradable pollution permits system, a price of pollution is set and then the quantity of permissible pollution is determined based upon that price.