Licenses that can be bought and sold by polluters and that enable the holder to pollute up to a specified amount during a given period are called:

A) emissions taxes.
B) Pigouvian taxes.
C) tradable emissions permits.
D) environmental standards.

Tradable Emissions Permits

A market-based environmental policy instrument that allows companies to buy or sell government-granted allotments of pollution, encouraging the reduction of emissions in a cost-effective manner.

Licenses

Official permits or authorizations granted by a governing body, allowing an individual or company to carry out a particular activity or use a particular product.

Polluters

Entities, often companies or individuals, that release pollutants into the environment, causing harm or potential harm.