Pollution Permits are licenses given out by the government that allow companies to pollute at a certain level. These permits are part of a free market solution to pollution problems that tries to put a limit on the amount of certain pollutants in nature. These permits have a monetary value in which they can be bought, sold, and traded. If a company pollutes more than a permit allows, then the company has to buy or trade to get more permits. Basically it promotes the idea that polluting cost money.
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