What is cap and trade?

Unfamiliar with cap and trade? If so, you may want to check out Cap and Trade 101 from the Center for American Progress. The downloadable PDF breaks down the basics, citing that the goal is “to steadily reduce carbon dioxide and other greenhouse gas emissions economy-wide in a cost-effective manner.” Essentially, companies and governments receive “caps” on greenhouse gas emissions, and can “trade” additional, remaining units of emissions with other companies who may have more difficulty efficiency reducing their emissions. Download the PDF to learn more.

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