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:
“We teach boys to be such men as we are. We do not teach them to aspire to be all they can. We do not give them a training as if we believed in their noble nature. We scarce educate their bodies. We do not train the eye and the hand. We exercise their understandings to the apprehension and comparison of some facts, to a skill in numbers, in words; we aim to make accountants, attorneys, engineers; but not to make able, earnest, great- hearted men.”
—Ralph Waldo Emerson (1803–1882)
“Away with the cant of “Measures, not men!”Mthe idle supposition that it is the harness and not the horses that draw the chariot along. No, Sir, if the comparison must be made, if the distinction must be taken, men are everything, measures comparatively nothing.”
—George Canning (1770–1827)
“I conceive that the leading characteristic of the nineteenth century has been the rapid growth of the scientific spirit, the consequent application of scientific methods of investigation to all the problems with which the human mind is occupied, and the correlative rejection of traditional beliefs which have proved their incompetence to bear such investigation.”
—Thomas Henry Huxley (1825–95)
“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.)