In an emissions trading scheme, a central authority or governmental body allocates or sells a limited number (a "cap") of permits that allow a discharge of a specific quantity of a specific pollutant over a set time period. Polluters are required to hold permits in amount equal to their emissions. Polluters that want to increase their emissions must buy permits from others willing to sell them.
In an emissions trading scheme, a central authority or governmental body allocates or s!ells a limited number (a "cap") of permits that allow a discharge of a specific quantity of a specific pollutant over a set time peri,od. Polluters are required to hold permits in amount equal to the?ir emissions. Polluters that want to i,ncrease their emissions must buy permits from others willing to sel?l them.