Cap and Trade Issues Essay Example
As an economic advisor to the president, you have been asked to discuss cap and trade issues at the next cabinet meeting. The president has asked that you focus your remarks on the following key points:
Cap and Trade is an environmental approach that aims at reducing greenhouse gases emissions. The “cap” establishes the maximum limit of pollution that is allowed thereby punishing or penalizing companies, organizations and industries that exceed this level. The “trade” ensures that companies operate within their carbon allowances as the less they emit the less they will pay. Thus this approach encourages industrial innovation that is utilized in order to find new ways of productions that is in line with environmental sustainability. Therefore, cap and trade is a policy that is environmentally and economically sustainable in controlling greenhouse emissions. Examples of Cap and Trade programs include the Clean Air Interstate Rule (CAIR) and the Acid Rain program (Gruber 2005).
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