Question

When polluters buy, sell, and trade permits with other polluters, this is called a __________. a. polluter-pays system b. cap-and-trade emissions c. trading system subsidy d. revolving-door policy

Answer 1

Option B

Step-by-step explanation:

In the cap and trade emission policy, the government of any country fixes the total amount or quantity of pollution which it can accept as a part of essential manufacturing and other industrial activities. Based on the total quantity, it issue permits to each industry a certain amount of pollution cap which it can release in a year and in case of exceed of the given limit, the polluter will be fined.

This system allows the polluters to exchange their permit benefits among themselves by trading (inclusive of buying and selling)

Hence, option B is correct