Within environmental regulation,the "cap-and-trade" principle essentially allows companies to buy and sell the right to pollute.

Question

Quizplus · Accepted Answer

Cap-and-trade systems establish a limit ("cap") on the overall amount of pollutants that can be emitted within a given period, and then allocate or sell permits ("allowances") that allow companies to emit a certain amount of pollution. Companies that reduce their emissions can sell their unused allowances to others who need more allowances to cover their emissions. This creates a market for pollution permits, and incentivizes companies to reduce their emissions in a cost-effective manner.

Within Environmental Regulation,the "Cap-And-Trade" Principle Essentially Allows Companies to Buy