Towards an Emissions Trading Scheme for Air Pollutants in India. Rohini Pande, August 2010, Paper. "“An emissions trading scheme is a regulatory tool used to reduce pollution emissions at a low overall cost. In such a scheme, the regulator sets the overall amount of emissions but does not decide what any particular source will emit. Industrial plants and other polluters, rather than being told a fixed emissions limit, face a price for their emissions and choose how much to emit, within reasonable limits, taking this price into account. The price of emissions makes pollution costly and gives polluters an incentive to cut back...” Link