environment hard MCQ

Which of the following is a market-based instrument for environmental management?

  1. Command-and-control regulations
  2. Tradable pollution permits (Cap-and-Trade)
  3. Technology standards
  4. Direct government provision

Answer: Tradable pollution permits (Cap-and-Trade)

Cap-and-trade sets an overall emissions limit and allows trading of permits, achieving reductions at lowest cost through market flexibility.

Topic Environmental Economics
Exam Relevance UPSC