Which Example Illustrates an Environmental Policy That Uses Tradable Pollution

Which example illustrates an environmental policy that uses tradable pollution permits?

A) a charge of $0.10 to automobile drivers for a given level of emitted emissions
B) paying automobile drivers $0.10 for each 10% reduction in automobile emissions
C) allowing automobile drivers to buy and sell the right to emit a certain level of automobile emissions
D) ignoring pollution and letting private markets operate without government interference

Correct Answer:

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