Comparison of Cap-and-trade With Other Methods of Emission Reduction
Cap-and-trade, offsets created through a baseline and credit approach, and a carbon tax are all market-based approaches that put a price on carbon and other greenhouse gases, and provide an economic incentive to reduce emissions, beginning with the lowest-cost opportunities.
The textbook emissions trading program can be called a "cap-and-trade" approach in which an aggregate cap on all sources is established and these sources are then allowed to trade emissions permits amongst themselves to determine which sources actually emit the total pollution load. An alternative approach with important differences is a baseline and credit program.
In a baseline and credit program polluters that are not under an aggregate cap can create permits or credits, usually called offsets, by reducing their emissions below a baseline level of emissions. Such credits can be purchased by polluters that have a regulatory limit.
Read more about this topic: Emissions Trading
Famous quotes containing the words comparison of, comparison, methods, emission and/or reduction:
“But the best read naturalist who lends an entire and devout attention to truth, will see that there remains much to learn of his relation to the world, and that it is not to be learned by any addition or subtraction or other comparison of known quantities, but is arrived at by untaught sallies of the spirit, by a continual self-recovery, and by entire humility.”
—Ralph Waldo Emerson (1803–1882)
“[Girls] study under the paralyzing idea that their acquirements cannot be brought into practical use. They may subserve the purposes of promoting individual domestic pleasure and social enjoyment in conversation, but what are they in comparison with the grand stimulation of independence and self- reliance, of the capability of contributing to the comfort and happiness of those whom they love as their own souls?”
—Sarah M. Grimke (1792–1873)
“Parents ought, through their own behavior and the values by which they live, to provide direction for their children. But they need to rid themselves of the idea that there are surefire methods which, when well applied, will produce certain predictable results. Whatever we do with and for our children ought to flow from our understanding of and our feelings for the particular situation and the relation we wish to exist between us and our child.”
—Bruno Bettelheim (20th century)
“Approximately 80% of our air pollution stems from hydrocarbons released by vegetation, so let’s not go overboard in setting and enforcing tough emission standards from man-made sources.”
—Ronald Reagan (b. 1911)
“The reduction of nuclear arsenals and the removal of the threat of worldwide nuclear destruction is a measure, in my judgment, of the power and strength of a great nation.”
—Jimmy Carter (James Earl Carter, Jr.)