President Barack Obama proposed using a system of:
A) Pigouvian taxes to reduce carbon dioxide emissions.
B) tradable allowances to reduce carbon dioxide emissions.
C) depreciation permits to reduce carbon emissions.
D) fines and levies to address greenhouse gas emissions.

Question

Quizplus · Accepted Answer

Obama proposed using a system of tradable allowances to reduce carbon dioxide emissions. This system is a type of cap-and-trade program, in which a cap is set on the total amount of emissions allowed, and companies are given allowances that they can trade with other companies to meet their emission targets. This provides companies with an incentive to reduce their emissions, as they can profit from selling unused allowances, and it allows for flexible and efficient ways to achieve emission reductions. Pigouvian taxes would be another approach to addressing carbon emissions, but Obama did not propose this specific approach. Depreciation permits and fines/levies are not common approaches to reducing carbon emissions.

President Barack Obama Proposed Using a System Of