-Which of the following is a measure taken by the government to internalize externalities?

Question

Quizplus · Accepted Answer

Cap and trade is a government regulatory system designed to give companies an incentive to reduce their emissions. It sets a cap on the total amount of certain greenhouse gases that can be emitted by all participating companies, and allows them to buy and sell permits to emit these gases, thus internalizing the cost of pollution.

-Which of the Following Is a Measure Taken by the Government