The companies then decide individually whether it is cheaper to reduce
emissions, which would free up extra
permits for
sale, or buy
permits from others on the open market.
States can draw from a number of options, including joining or starting a cap - and - trade program, which sets limits on
emissions, then allows for the purchase and
sale of pollution
permits; boosting their share of renewable energy in electricity generation; and tightening efficiency standards on plants and energy users.