If the city government of Chicago decides to limit the total amount of municipal sewage that can be discharged into Lake Michigan by selling the rights to the total discharge level, then the government's environmental policy includes:

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This policy is known as cap and trade, where the government sets a limit (or cap) on total emissions and issues permits to polluting entities that can be bought and sold (or traded), allowing them to emit a certain amount. This incentivizes companies to reduce their emissions to stay under the cap or purchase additional permits from companies that have reduced their emissions more than required.

If the City Government of Chicago Decides to Limit the Total