Your community requires the sewage-treatment plant to process raw sewage so that it is safe to return the water to the environment.This example illustrates:

A) an emissions tax.
B) the Coase theorem.
C) a tradable emissions permit.
D) an environmental standard.

Sewage-Treatment Plant

A facility designed to receive the wastewater from domestic, commercial, and industrial sources and to remove materials that damage water quality and threaten public health and safety.

Environmental Standard

Rules and criteria set by governmental bodies to protect the environment by controlling pollution levels and resource use.