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The cap anddividendpolicy works by reducing carbon emissions over time through the use ofpermits. Option (b) is correct.It entails granting licenses to businesses that increase overall carbon emissions in a cap anddividendprogram. The amount of carbon emissions that these companies might produce would be limited, and the number of permits would be dwindling annually.In a cap-and-trade system, the government decides what level of pollution is acceptable before granting permits topollute. A corporation can sell the credits it obtains for the amounts it does not emit to other businesses.Therefore, Option (b) is correct.Learn more aboutdividend, here;brainly.com/question/33428821#SPJ6...