Setting emissions standards for each industry, while allowing companies to trade "carbon credits," is an approach to environmental policy known as ________.

Question

Quizplus · Accepted Answer

The approach described is known as cap and trade. It involves setting a limit (or cap) on the total amount of emissions allowed from all companies in a particular industry, and then allowing companies to trade (buy and sell) permits (or credits) that allow them to emit a certain amount of greenhouse gases. This system incentivizes companies to reduce their emissions, while also allowing for flexibility and the potential for cost savings. The Gore protocol is not a recognized term in environmental policy. The Green alternative and NIMBY (not in my backyard) are not related to this approach.

Setting Emissions Standards for Each Industry, While Allowing Companies to Trade