Question

QUESTION 23 Explain the "Cap and Trade" approach to pollution control. How does it work? What are the benefits? What are the potential downsides? TTT Arial 3(12pt) T E E >.25 ortovo bossono 3 Sbotaqxonant noted lot od ton aw bluoda.gorb Toto Oy own auto - On utsta noitelmonolu Yoolist Isipol to equt erit ylitnebl

Answer 1

Answer-23)

Cap and trade is also known as emission trading approach to pollution control which is practiced by providing economic incentives for achieving reductions in the emissions of pollutants. Cap and trade works by setting a limit on pollution and creating a marketfor companies to buy and sell allowances that let them emit only a certain amount of pollution.

Some of the benefits associated with cap and trade are as follows :-

- It creates a new economic resource for countries.

- There is a predetermined level of maximum level of emissions.

- It can be a way to supplement taxpayer resources

And some of the disadvantages associated with cap and trade are as follows :-

- Many of the emissions credits are just given away.

- The emissions credits are almost always cheaper than converting to friendlier resources.

- Some credits are artificially high in price.

Hope this helps you !!!