Question

The cap and dividend policy works by _______.
a.
ending industrial carbon emissions immediately
b.
reducing carbon emissions over time through the use of permits
c.
reducing carbon emissions by rewarding industry for better practices
d.
all of the above


Please select the best answer from the choices provided

A
B
C
D

Answer 1

B

Cap-and-dividend sets a declining cap on emissions and uses tradable permits (or allowances) to reduce carbon emissions over time; auction revenue is returned to citizens as dividends.