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What is cap and trade?

by Guest65722  |  earlier

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What is cap and trade?

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  1. The government sets a cap or limit on the quantity of a pollutant any particular company can emit.  The companies that polute less than that limit can sell their excess allowances to those companies that pollute more.  That's where the trading comes in.   This provides an economic incentive to a company to profit from the trading process by being curbing its own pollution.

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