Which example BEST describes tradable emissions permits?

A) a tax system for internalizing emission costs to the market
B) a subsidy system for encouraging production of goods with positive externalities
C) a system of voluntary negotiations between polluters and damaged parties
D) a system of licenses that can be bought and sold and that enable the holder to pollute up to a specified amount during a given period

Tradable Emissions Permits

Allowances that can be bought and sold, granting the holder the right to emit a certain amount of pollutants, designed to reduce overall environmental impact.

Emission Costs

The costs associated with the release of pollutants into the environment from industrial or other activities.

Licenses

Official permissions granted by an authority to an individual or organization to do something, especially to carry out a business or activity.