If the government sells certificates giving the owner permission to emit a particular amount of pollution,and then allows these certificates to be bought and sold at a market price,then the government is using a market-based approach to pollution reduction called

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A pollution permit gives a business the right to emit a particular amount of pollution. Only a certain number of permits are issued, which provides a cap on the amount of pollution. These permits can be bought or sold. The ability to sell permits for a profit gives firms incentive to cut their own emissions more than required.

If the Government Sells Certificates Giving the Owner Permission to Emit