When the Government Uses a Cap-And-Trade Approach in Dealing with Pollution

When the government uses a cap-and-trade approach in dealing with pollution, it

A) uses taxes in order to internalize the externalities caused by the pollution.
B) imposes quantitative limits on the amount of pollution firms are allowed to generate.
C) uses subsidies to encourage firms to use new technology that reduces pollution.
D) distributes information to consumers and producers on how to reduce pollution.