A cap and trade system: 1. was used in nineteenth-century England to limit coal consumption. 2. encourages fair trade by limiting the amount of many vegetables that can be imported from Mexico. 3. reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases. 4. exempts Chinese imports from Food and Drug Administration regulations.

reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases.

Explanation:

Cap and trade reduce emissions, such as those from power plants, by setting a limit on pollution and creating a market ... It's a system designed to reduce pollution in our atmosphere. The cap on greenhouse gas emissions that drive global warming is a firm limit on pollution.

Today, cap and trade is used or being developed in all parts of the world. For example, European countries have operated a cap-and-trade program since 2005. Several Chinese cities and provinces have had carbon caps since 2013, and the government is working toward a national program.

the market-based pollution control system in which the government sets an overall limit on how much of a pollutant is acceptable from an entire industry or country and issues vouchers to pollute to each company; individual companies are then free to trade these vouchers.

Answer: 3. Reduces climate change by requiring individuals and firms to buy licenses to emit greenhouse gases.

Explanation:

The Cap and Trade system is a policy that seeks to reduce the emission of gases to the environment to the barest minimum.

There is a standard or cap which companies are expected to adhere to. Noncompliance to these standards attracts fines. It is a measure that seeks to combat global warming.

Trading ensures that companies who are able to cut down on their emissions can have extra allowances or revenue which can be sold to other companies.