Read: “Cap and Trade: Essentials”
“How Cap and Trade Works”
“The Climate Change Agenda Needs to Adapt to Reality”
Write answers to the
following:
1. What is cap and trade attempting to regulate?
2. What is meant by “cap”?
What is meant by “trade”?
3. How is this an example of a solution to market failure?
4. What are Edward
Lazear’s reservations about cap and trade and other methods to reduce
carbon emissions?
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