"Cap and trade" means that each business has:

Question

Quizplus · Accepted Answer

Cap and trade means that the government sets a limit or cap on the total amount of pollutants that can be emitted by businesses. Each business is then granted a certain number of permits to emit a specific quantity of pollution. If a business emits less than its allotted amount, it can sell or trade its unused permits to other businesses that need to emit more pollutants. This creates a market incentive for companies to reduce their emissions, as those that emit less can profit by selling their unused permits to those that emit more.

"Cap and Trade" Means That Each Business Has