In a cap-and-trade approach,the government creates an infinite number of tradeable emission allowances that must be surrendered to the companies generating the largest emissions.

Question

Quizplus · Accepted Answer

In a cap-and-trade approach, the government sets a limit (or cap) on the amount of emissions that can be released and creates a certain number of tradeable emission allowances that must be surrendered by companies to comply with the cap. These allowances are typically limited in number, not infinite.

In a Cap-And-Trade Approach,the Government Creates an Infinite Number of Tradeable