Government Intervention In The Market

Question 1

Cap and trade schemes

Answer 1

Schemes which set a limit on a particular type of pollution, and then issue pollution permits to the total of that limit which can be bought and sold between firms which pollute

Question 2

Trade pollution permit

Answer 2

A permission issued usually by the government to allow a fixed amount of pollution to be created; this permit can be used by the owner or sold to another firm