How Can Pollution Permits Reduce Pollution?

The answer is yes, even though the idea of distributing polluting permits can be morally debatable. Let’s explain this idea with one general principle: the Earth can tolerate a certain amount of pollution without having serious consequences. After all, someone who has peed in a lake can’t be blamed for contaminating the water with his small amount of urine. Dilution works the same way with gas when carbon dioxide gets absorbed by trees. In the context of using polluting permits, we would give every company on the planet a right to issue a certain amount of pollution. The total amount distributed would be an amount tolerable for the planet to ensure dilution of the carbon dioxide and consequently, avoid global warming. Therefore, polluting permits can help in reducing the amount of pollution on the planet.