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There seems to be a lot of confusion out there regarding pollution control and the best way to achieve it. I'm hoping with this thread we can clear up some of that confusion and get into discussions of how best we might curb pollution as individuals and collectively as a nation.
Whether you support it, or oppose it, I think cap and trade is one of the most misunderstood methods of pollution control out there. There are legitimate pros and cons but Cap and trade is not, as some think, a government plot to destroy industry. It is actually an industry proposal as an alternative to strict regulation. I hope we can get into the legitimate pros and cons, as well as alternative policies, but let's start with an explanation of cap and trade or emissions trading as it has been known longer:
"Emissions trading (also known as cap and trade) is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.[1]
A central authority (usually a governmental body) sets a limit or cap on the amount of a pollutant that can be emitted. The limit or cap is allocated or sold to firms in the form of emissions permits which represent the right to emit or discharge a specific volume of the specified pollutant. Firms are required to hold a number of permits (or carbon credits) equivalent to their emissions. The total number of permits cannot exceed the cap, limiting total emissions to that level. Firms that need to increase their emission permits must buy permits from those who require fewer permits.[1] The transfer of permits is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions. Thus, in theory, those who can reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest cost to society."
Emissions trading - Wikipedia, the free encyclopedia
Please tell us what you like and don't like about this and other methods of pollution control and present your alternatives.
Whether you support it, or oppose it, I think cap and trade is one of the most misunderstood methods of pollution control out there. There are legitimate pros and cons but Cap and trade is not, as some think, a government plot to destroy industry. It is actually an industry proposal as an alternative to strict regulation. I hope we can get into the legitimate pros and cons, as well as alternative policies, but let's start with an explanation of cap and trade or emissions trading as it has been known longer:
"Emissions trading (also known as cap and trade) is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.[1]
A central authority (usually a governmental body) sets a limit or cap on the amount of a pollutant that can be emitted. The limit or cap is allocated or sold to firms in the form of emissions permits which represent the right to emit or discharge a specific volume of the specified pollutant. Firms are required to hold a number of permits (or carbon credits) equivalent to their emissions. The total number of permits cannot exceed the cap, limiting total emissions to that level. Firms that need to increase their emission permits must buy permits from those who require fewer permits.[1] The transfer of permits is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions. Thus, in theory, those who can reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest cost to society."
Emissions trading - Wikipedia, the free encyclopedia
Please tell us what you like and don't like about this and other methods of pollution control and present your alternatives.
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