The EPA and Clean Air Act · US History

The 1990 Amendments to the Clean Air Act introduced which innovative market-based system to reduce acid rain?

  1. Direct federal government ownership of all coal-fired power plants nationwide
  2. A 'Cap and Trade' allowance system for sulfur dioxide emissions
  3. A total ban on the use of coal throughout the United States
  4. A tax on every citizen who uses residential electricity
Show answer and explanation

Correct answer: A 'Cap and Trade' allowance system for sulfur dioxide emissions

Cap and trade set a limit on total emissions but allowed companies to buy and sell credits. This provided a financial incentive for power plants to innovate and reduce pollution more efficiently than traditional 'command and control' regulations.

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