Question

When a government establishes a marketable permit program to address environmental pollution, it is actually issuing a form of command-and-control regulation. pollution tax. permit to pollute. inflexible, costly regulation.

Answer 1

A government is issuing a permit to pollute when its establishes a marketable permit program to address environmental pollution.

What is a marketable permit program?

This refers to a a program in which a city / state government issues permits allowing only a certain quantity of pollution such as water, noise, air pollution into the environment.

In other times, the permits to pollute can be sold or given to firms free and the pollution charge can also be a tax imposed on the quantity of pollution that a firm emits.

Hence, the government is issuing a permit to pollute when its establishes a marketable permit program to address environmental pollution.

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