Emissions trading: Emissions trading, or cap-and-trade, is a market-based approach to control pollution. Governments set an overall limit (cap) on emissions, issuing permits accordingly. Companies can trade these permits, incentivizing lower emissions. This system encourages efficiency as businesses innovate to reduce emissions, providing financial benefits to those emitting less and meeting environmental targets. See also Climate Change, Climate damages, Emissions, Emission targets._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. |