Which of the following is an environmental policy based on tradable pollution permits?

A. ignoring pollution and letting private markets operate without government interference

B. allowing automobile drivers to buy and sell the right to a certain level of automobile emissions

C. a charge of $0.10 to automobile drivers for a given level of emitted emissions

D. paying automobile drivers $0.10 for each 10% reduction in automobile emissions

Option B

Allowing automobile drivers to buy and sell the right to a certain level of automobile emissions is an environmental policy based on tradable pollution permits

Explanation:

It has been declared that tradable pollution permits accomplish the fancied level of pollution limitation at an optimal cost to society. They give groups a legitimate right to pollute a specific cost per set period. Firms that contaminate less can then sell their unused pollution privileges to firms that pollute more further. The purpose of this is that polluting firms and public means differ in their capacity to reduce their pollution - Consequently, tradable pollution permits can be a cost-effective way to reach a decline in overall pollution.