Trading Program

{
  "id": "MLC-T-ENV-028465",
  "term": "Trading Program",
  "field": "Environment",
  "definition": "The basic approach is that the environmental authority can issue a fixed number of marketable permits to release emissions. Through trading, low-cost sources will sell some of their permits and abate more than they would under a traditional regulatory approach, while high-cost sources will buy permits and abate less. The end result, according to the academic design, is the same amount of pollution reduction that would be achieved through traditional regulatory approaches, but it is achieved at lower cost.",
  "references": [
    "EPA Trading Programs at http://yosemite.epa.gov/ee/epa/eerm.nsf/vwAN/EE-0216B-07.pdf/$file/EE-0216B-07.pdf"
  ],
  "url": "https://mlchart.com/terminology/environment/trading-program/"
}