By definition, this is an administrative means for the government to provide incentives to businesses to reduce emissions and control pollution through economic incentives.
To elaborate, the government issues a limit (or cap) on the amount of pollutants that can be emitted. Business then issue credits to show how much they have reduced their share of these pollutants by compared to the amount of limit the government has imposed. In theory, those who have reduced their emissions will have leftover credit while others will break even and others will pass their limit. Those who pass their limit would be have to buy credits from those who reduced their pollution to avoid penalties from the government. This would reward those who reduce their emissions while those who did not would have in one form or another be “paying” for not changing.
Read all about it here: http://en.wikipedia.org/wiki/Emissions_trading
Posts
No comments:
Post a Comment