Emissions trading, also known as cap and trade, is an environmental policy tool used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Under an emissions trading scheme, a cap is placed on the total amount of a pollutant that can be emitted. The cap is reduced over time so that total emissions also decline. Companies are allocated emissions permits which they can buy and sell as needed depending on their requirements. This provides ... Read more
