Which of the following best describes a compliance-based payments for ecosystem service system?
a. The price for emitting polution is fixed in both the short run and long run.
b. Government has no role in this payment arrangement system.
c. Oversight and monitoring of credit trading is needed in order for the program to be sustainable over time.
d. Government regulators cap the level of externalities produced (e.g., air emissions) and then create a market that allows buyers and sellers to trade the right to produce the externality.