SCIENCE
ENVIRONMENTAL SCIENCES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It prohibits companies from emitting any pollution.
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It consistently reduces pollution in all areas.
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It issues permits that allow companies to emit a percentage of the overall amount of a given pollutant.
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It always leads to positive environmental results.
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Detailed explanation-1: -Although cap and trade systems reduce emissions and can lead to faster cuts in pollution, they also tend to increase the price of oil, coal, and natural gas in an effort to force companies to switch to alternative forms of energy. These initiatives are expensive and impact negatively the economy.
Detailed explanation-2: -Emissions trading, also known as ‘cap and trade’, is a cost-effective way of reducing greenhouse gas emissions. To incentivise firms to reduce their emissions, a government sets a cap on the maximum level of emissions and creates permits, or allowances, for each unit of emissions allowed under the cap.
Detailed explanation-3: -What is Cap and Trade? The goal: To steadily reduce carbon dioxide and other greenhouse gas emissions economy-wide in a cost-effective manner. The cap: Each large-scale emitter, or company, will have a limit on the amount of greenhouse gas that it can emit.
Detailed explanation-4: -It increases the pool of available capital to make reductions, encourages companies to cut pollution faster and rewards innovation. Cap and trade lets the market find the cheapest way to cut emissions. Because there are only so many allowances available, total pollution drops as the cap falls.