Suppose the government wants to reduce the total pollution emitted by three local firms. currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. if the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: available methods to reduce pollution1. the government sets pollution standards using regulation.2. the government allocates tradable pollution permits.

The government sets pollution standards using regulations

Explanation:

For the government of a country to effectively reduce pollution by industries present in it's nation, pollution standards needs to be put in place with the use of laws/regulations backing them.

For example in the question, the government can make set a pollution standard that the industry must not go beyond 6 units of pollution otherwise a fine would be charged for defaulting. This would persuade the industry to reduce their pollution rate.

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