Cap-and-Trade
Cap-and-trade is an environmental policy tool designed to reduce pollution. It sets a limit (or cap) on the total amount of greenhouse gases that can be emitted by companies. Companies are given or can buy permits to emit a certain amount of pollution. If they emit less, they can sell their extra permits to others that might exceed their limits. This creates a financial incentive to reduce emissions, as companies can profit from lower pollution levels. The overall goal is to lower total emissions over time, helping to combat climate change and promote cleaner air.
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Cap and Trade is an environmental policy designed to reduce pollution. The government sets a limit (cap) on the total amount of greenhouse gases that can be emitted by businesses. Companies receive or buy permits that allow them to emit a certain amount of emissions. If a company reduces its emissions below its allowance, it can sell its extra permits to other companies that need them. This creates a financial incentive for companies to lower their emissions, as those who pollute less can profit by selling their unused permits, promoting overall reductions in pollution levels.