Thursday, October 1, 2015
Cap and Trade
There is so much pollution in today's' society. Every where you look there is some sort of pollution whether it be from the cars or your snow blower. Cap and trade is a tool to protecting the environment by controlling amounts of emissions into the environment. A carbon tax is taxing the people for the right to pollute. Many people will not stop driving their car in order to stop polluting. The people would be willing to pay more if it meant that they can still use their car.In "Carbon Tax V cap-and-trade: which is better?" it states that cap and trade sets a maximum level of pollution and distributes emission permits among the firms that produce the emission. This is showing how cap and trade works. A cap and trade takes more control than in a tax. This is because the government has a set amount of supply that the firm can use. This limits them and makes them rethink how conserve the emission. In addition to this, the article "We Need a Well-Designed Cap-and-Trade program to fight global warming" states that a Cap and trade is not enough alone. The government must do more to bring down the carbon emissions. There should be "Parallel Policies." This means that the government should also provide a full range of clean technology. If the government sets a cap on the supply, the consumers are going to find other ways to fill in those needs. In order to let that happen, there needs to be a wide range of technologies. This is why a cap-and-trade is more beneficial to have a higher motivation in finding alternatives. In a Carbon tax, the article "Carbon Tax V cap-and-trade: which is better?" states that it gives an incentive to reduce pollution. I believe that this would not work to bring the over all carbon emission down. This is because although the taxes would be raised, people would still find it in their budget to pay more in order to keep their goods and services. People cherish the cars they drive and would do anything to drive them. Along with this the government would have to find the exact level of taxing. So putting a tax on the carbon emission is not the most effective way of reducing the emission. This would not solve the problem to reduce the amounts of emission into the environment.
In the picture is shows the curve for Taxing and for a cap and trade. The cap and trade has the supply curve going straight up and down. This is the limit to the carbon emissions. This stimulates research and innovation to find alternatives to bring the emission rate down.
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