The cap-and-trade program for regulating air pollutants by the U.S. government is an example of

Question

Quizplus · Accepted Answer

The cap-and-trade program is an incentive-based regulation, as it encourages companies to reduce their emissions of air pollutants by creating a market for emissions allowances that can be bought or sold. Companies that reduce their emissions can sell their unused allowances to other companies, creating a financial incentive to reduce pollution. This is different from command and control regulation, which sets specific limits or requirements on companies without providing any economic incentives. Full-cost pricing and service-flow regulation are not relevant to this program.

The Cap-And-Trade Program for Regulating Air Pollutants by the U