Can emissions trading save us?

3 min read

What is emissions trading? Source Emissions trading, also known as cap and trade, has two components. First a cap is set on total emissions for the participating firms. Each firm is allowed a certain amount of emissions, or allowances. The second component is the trading. When a company has leftover allowances, they can trade them to another company. Firms may identify offsets, where efforts are being made to reduce emissions, and invest in those. Offsets can be traded for allowances. The good parts Many ex ante analyses have found that emission trading achieves similar reductions to more traditional regulation policies…...

This article is free to read

Login to read the full article


OR

By subscribing to our main site, you will also be subscribed to DDIntel - our regular letter showcasing our featured articles and applications.

Srihita Mediboina I’m currently a senior at Stony Brook University focusing on economic policy and data analysis.