The _____ approach to pollution control allows a company to bid for the right to discharge a certain pollutant.

The _____ approach to pollution control allows a company to bid for the right to discharge a certain pollutant.

• A. Point source
• B. Scoping
• C. Manifest system
• D. Marketable rights

Answer: (D)

Market-based pollution control uses tradable emission rights. In this approach a cap is set on how much of a pollutant can be released in total, and permits or rights to emit that amount are allocated or auctioned. Firms can buy, sell, or bid for these rights, so a company can obtain the legal permission to discharge a pollutant by acquiring the appropriate permit. The price for these rights is determined by supply and demand, creating incentives to reduce emissions where it’s cheaper to do so and to trade permits to those who need them, achieving overall pollution reduction more cost-effectively than fixed limits. The other concepts don’t fit because point source refers to a specific pollution source, not a system of trading rights; scoping is about determining what issues to study in an assessment; and the manifest system tracks hazardous waste shipments rather than rights to emit pollutants.

Market-based pollution control uses tradable emission rights. In this approach a cap is set on how much of a pollutant can be released in total, and permits or rights to emit that amount are allocated or auctioned. Firms can buy, sell, or bid for these rights, so a company can obtain the legal permission to discharge a pollutant by acquiring the appropriate permit. The price for these rights is determined by supply and demand, creating incentives to reduce emissions where it’s cheaper to do so and to trade permits to those who need them, achieving overall pollution reduction more cost-effectively than fixed limits.

The other concepts don’t fit because point source refers to a specific pollution source, not a system of trading rights; scoping is about determining what issues to study in an assessment; and the manifest system tracks hazardous waste shipments rather than rights to emit pollutants.