It has been proposed that a government agency be charged with the task of determining the amount of pollution that the atmosphere (or a body of water) can safely absorb, establish "rights" to this limited amount of pollution, and sell those limited amount of rights to firms. The firms can then buy and sell these rights among themselves later. This approach is known as the:

Question

Zack Riggs

Business

20 October, 01:58

It has been proposed that a government agency be charged with the task of determining the amount of pollution that the atmosphere (or a body of water) can safely absorb, establish "rights" to this limited amount of pollution, and sell those limited amount of rights to firms. The firms can then buy and sell these rights among themselves later. This approach is known as the:

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Answers (1)

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Nicholas Case · Answer 1

The correct answer is: Cap and Trade System.

Explanation:

The Cap and Trade System is a governmental regulation that aims to set the boundaries of manufacturing emissions, moreover the ones provoked by carbon dioxide. The government issues a limited amount of permits that are provided to companies on an annual basis. If the organization exceeds those permits, it will be taxed for outstanding emissions.