A cap-and-trade policy A. has a set number of permits. B. allows polluters to trade permits....
A cap-and-trade policy
A. has a set number of permits.
B. allows polluters to trade permits.
C.caps the total level of pollution allowed.
D. all of these answer options are correct.
Homework Answers
Answer - all of these answer options are correct
Reason - pollution permits are the permits allowed to firms to emit pollution upto a certain cap limit.
First an yearly overall cap level of pollution is decided and then permits are distributed as per emittion records of various forms.
These permits can be obtained by initial allocation or auction or by trading with other firms. When a polluter has used less than the limit allowed to them, they can sell the remaining limit to other firms which allows polluters to trade their remaining caps.
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A cap-and-trade policy
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