Cap and trade

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Gray Is : 

Gray Is Greening Advocacy Learning Cap-and-Trade: A brief overview Green:

The True Cost of Pollution : 

The True Cost of Pollution Every human activity has a cost: Each gallon of gasoline we put in our cars, for example, costs us a certain amount at the pump. However, we all know that the emissions from burning that gasoline has a wider impact on the environment. This impact has a cost. GREENHOUSE GASES (and other impacts)

The True Cost of Pollution : 

The True Cost of Pollution The cost of pollution is paid by everyone: Emissions from power plants have real costs in terms of the health of the environment and the human population, opportunities for recreation, property values, etc… These costs are usually not paid by the polluters.

The True Cost of Pollution : 

The True Cost of Pollution Why don’t polluters pay? At the moment, polluters generally pass the cost of their pollution on to society. Because polluting costs them nothing, they have no financial incentive to find cleaner ways to operate. However, if polluting cost money, they would want to find the right balance between emissions and cost.

Cap-and-Trade : 

Cap-and-Trade Cap-and-Trade is one solution: There are many possible ways to get polluters, such as coal power plants, to reduce their emissions. Cap-and-trade is a popular option because it is market-based rather than purely a tax or regulation. This gives polluters the freedom to come up with their own solutions at the best price.

Cap-and-Trade : 

Cap-and-Trade First – the cap: The first step is to determine how much TOTAL pollution will be acceptable across the country as a whole. Current Emissions Acceptable Levels

Cap-and-Trade : 

Cap-and-Trade Next – the permits: The second step is to give polluters permits to emit a certain amount each, adding up to the total amount. 1 2 3 4 5 The exact number of permits that each polluter receivesdepends on a number of factors, such as how muchthey emitted before the capwas established. They willprobably not all get the samenumber of permits.

Cap-and-Trade : 

Cap-and-Trade Exceeding the permits: If polluters exceed their allotted amounts of emissions, they will have to pay a penalty for each extra unit (e.g. ton of C02). To avoid this penalty, the polluters need to innovate, and find cleaner ways to operate. $ $

Cap-and-Trade : 

Cap-and-Trade Exceeding the permits: Instead of releasing CO2, they might be able to install wind turbines to generate electricity. There are many ways to improve environmental performance, and cap-and-trade allows each polluter to find the best way for themselves.

Cap-and-Trade : 

Cap-and-Trade Trade: If the polluter innovates so well that they don’t even need all of the permits they have, they can sell the excess permits to a polluter that needs them. Now the permits have value instead of cost.

Cap-and-Trade : 

Cap-and-Trade Trade: Polluters that don’t have the ability to install wind turbines can purchase the excess permits at prices determined by the open market. Overall, the incentive is to reduce emissions to sell permits to those that cannot.

Cap-and-Trade : 

Cap-and-Trade Result: Rather than in the case of a tax or regulations, cap-and-trade give polluters an incentive to reduce their emissions even more than required by their number of permits. Excess permits have a value on the market, and if they can sell them for more than the cost of the cleaner operations, they will turn a profit.

Cap-and-Trade : 

Cap-and-Trade Concerns: There are a number of challenges to implementing a cap-and-trade system. It can be hard to determine the “right” level of pollution, the number of permits to give and how to distribute them fairly, and the penalty for exceeding one’s permits. These concerns, among others, have made it difficult to move cap-and-trade from theory to reality.

Gray Is GreenThe National Senior Conservation Corps : 

Gray Is GreenThe National Senior Conservation Corps © 2009 Gray Is Green: The National Senior Conservation Corps 26 Broadway North Haven, CT 06473 http://www.grayisgreen.org info@grayisgreen.org

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