Suppose the federal government determines the total level of municipal sewage that can be discharged by cities along a river.If the cities are able to buy and sell rights to the total discharge level among themselves,then the government's environmental policy includes:

A) emissions taxes.
B) Pigouvian subsidies.
C) tradable pollution permits.
D) command and control.

Tradable Pollution Permits

A market-based approach to controlling pollution by offering a limited number of permits that allow the holder to emit a certain amount of pollutants, which can be bought and sold.

Municipal Sewage

Waste water and solids collected from a community, typically transported through a sewer system for treatment or disposal.

Discharge Level

The amount or volume of a substance released into the environment, often related to pollution control.