what is emissions trading?

Question

can someone plz explain this in simples words??

Answer 1

In some countries industries are allowed to produce a certain amount of air pollution. Emissions are the air pollutants they put out. If an industry doesn't make as much air pollution as it's allowed to make, it can trade or sell the extra pollution allowance to another industry that is making more pollution than it is allowed to make.

Imagine that students would get special tickets to skip three homework assignments in a semester. If you do all your homework then you could sell or trade your tickets to me because I want to skip more than 3 homework assignments.