Why Do Tradable Pollution Permits Provide an Incentive to Reduce

question 44

Essay

Why do tradable pollution permits provide an incentive to reduce pollution?

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Definitions:

Defer Gratification

The process of resisting the temptation of an immediate reward in preference for a later reward.

Inhibit Impulse

The psychological mechanism through which an individual restrains or controls their instincts or desires.

Goal-directed Behaviors

Represents actions that are performed with a specific outcome or goal in mind.

Immediate Reward

A benefit received directly following a certain action or behavior, which can reinforce the behavior and encourage its repetition.