Question

To implement an overall cap on emissions from electricity generators, it is better to use an emissions trading system compared to simply imposing a cap on every generator. Is this true or false? Explain your answer

Answer 1

TRUE .

Emissions trading system or cap and trade system is the most effective climate policy . It is efficient both environmentally and economically . A specific level of emission will be achieved and maintained . It also creates a trading market . It is easier to keep track and regulate pollution . Fewer administrative resources required . So it is better to use emissions trading system compared to simply imposing a cap on every generator . It is difficult to keep track on every generator .