These pollution permits would be bought and sold in an organized market not unlike the stock market.
Pollution Permits. Pollution permits are a tradeable permit scheme which give firms and countries an incentive to reduce pollution, otherwise they have to buy more permits.
Regulation.
Another contributing factor was the increase in the price of pollution permits by several hundred percent. California's long resistance to constructing new power plants was one factor that kept prices from their usual decline when summer 2000 ended.
Allowing trade in pollution rights may encourage 'efficient pollution', with the pollution permits ending up in the hands of those for which pollution has the greatest economic upside.
Some examples include local farmers' markets held in town squares or parking lots, shopping centers and shopping malls, international currency and commodity markets, legally created markets such as for pollution permits, ...
 See also: Billion, Market failure, Free market, Public good, Dependence
  
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