12 Cap and Trade Pros and Cons

There is enough oil to last for nearly a century and there is enough coal to last for nearly 5 centuries. The proceeds from these auctions are used to fund energy efficiency and clean energy initiatives throughout the RGGI member states. Cap and trade is certainly not ideal; we would all like for a solution that will reduce greenhouse gas emissions but not require cost increases for energy and consumer goods. We have plenty of fossil fuel resources available to us, but future generations may not have this convenience. This makes it very easy for the average business to cheat on their emissions reports if they are so inclined. What is Cap and Trade?

The income from credits can help to make this happen, even when a cap is in place. This income can be supplemented with carbon taxes in place that work with the cap trade system. 5. The average person can create change. The cap trade system creates a new knowledge base for consumers because certain products may not be in compliance with the laws.

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In the end, a comprehensive summary will arrive at the conclusion that cap and trade may be the best option for reducing greenhouse gas emissions, given the high cost of alternatives, the efficiency of the cap and trade system, and the success of this system in the past. An economy wide cap-and-trade system that limits carbon emissions, or the levying of a fee for carbon emissions, would harness market forces to find the least cost means to reduce carbon emissions. Nov 03,  · The Benefits of Cap and Trade Se below (Photo credit: Wikipedia) Cap-and-trade programs offer significant advantages over traditional regulatory policies, particularly in the effort to address climate change.