Which Statement Best Describes a Cap and Trade Program

question 56

Multiple Choice

Which statement best describes a cap and trade program?

• A) an emissions control policy and market incentive that limits an industry's emission allowance and allows it to purchase emission permits from other lower emitting industries.
• B) a program that gradually reduces the allowed emissions of an industry each year, incentivizing the industry's transition to zero emissions with tax breaks.
• C) a policy that requires industries to cap their emissions by a specific deadline or give majority ownership to the state if they fail to accomplish this reduction.
• D) an international attempt to reduce emissions by setting emissions quotas for each country and allowing each country to buy emission credits from others if they reach their limit.

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