Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 19: Problem 14

How is a cap-and-trade system used to lower air pollution?

Short Answer

Expert verified
Cap-and-trade system is an environmental policy that limits the total amount of pollutants that can be emitted by companies, commonly referred to as a 'cap'. Companies can trade their emissions allowances with each other, providing an economic incentive to lower their emissions. Over time, the cap is reduced, leading to an overall reduction in total pollution levels.

Step by step solution

01

Understanding the cap-and-trade system

The cap-and-trade system is an approach used to manage pollution by providing economic incentives for reducing the emissions of pollutants. A cap (or limit) is set on the total amount of certain kinds of pollution that can be emitted by companies. The cap is lowered over time to reduce the total pollution levels.
02

Role of Trade

Companies can 'trade' (buy and sell) permits within the cap and trade system, allowing them to emit a certain amount of pollutants. If a company reduces its pollution below its permitted level, it can sell its leftover permits to other companies that may find it harder or more costly to reduce their emissions.
03

Encouraging Reduction

The premise of a cap-and-trade system is to make it in the economic interest of companies to reduce their emissions. Companies that can reduce their emissions cheaply will do so, and then sell their excess permits. Companies that can't will buy additional permits. Over time, as the cap is lowered, overall emissions are reduced.
04

Cap-and-trade system's effectiveness

Evidence has shown that cap-and-trade systems can be effective in reducing overall emissions in a cost-effective manner. It promotes creativity and efficiency in reducing emissions sharing a burden across industries.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

What are the major secondary pollutants, and how are they formed?

How is the protective ozone shield formed? What causes its natural breakdown?

What naturally occurring cleanser helps to remove pollutants from the atmosphere? Where does it come from? What other mechanisms also act to cleanse the atmosphere of pollutants?

Describe the international efforts that are currently in place to protect the ozone shield. What evidence is there that such efforts have been effective?

Describe the origins of industrial smog, photochemical smog, and atmospheric brown clouds. What are the differences in the cause and appearance of each?
See all solutions

Recommended explanations on Environmental Science Textbooks

Biological Resources

Read Explanation

Physical Environment

Read Explanation

Environmental Research

Read Explanation

Living Environment

Read Explanation

Energy Resources

Read Explanation

Ecological Conservation

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free