Tragedy of the commons problems have been solved through tradable allowances.

Question

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Tradable allowances, also known as cap and trade systems, assign a set number of pollution allowances to each individual or company. Those who emit less than their allotted allowance can sell their remaining credits to those who emit more than their allowance. By creating a market for pollution allowances, this system creates an economic incentive for companies to reduce their emissions and rewards those who do. This has been successful in solving tragedy of the commons problems related to air and water pollution.

Tragedy of the Commons Problems Have Been Solved Through Tradable