Suppose that the federal government determines the total level of municipal sewage that can be discharged by cities located along a river.If the cities are able to exchange rights to this total discharge level among themselves, this would be an environmental policy of:

Question

Quizplus · Accepted Answer

The ability of the cities to exchange rights to the total discharge level among themselves indicates that they are using a market-based approach, which is a characteristic of marketable pollution permits. This approach creates a market for pollution rights where cities that can reduce their emissions at a lower cost can sell their rights to those that face higher costs of reducing emissions. This approach encourages less expensive pollution control, making it more cost-effective and efficient in reducing pollution.

Suppose That the Federal Government Determines the Total Level of Municipal