Boston University Geology Paper

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xvzwbatha

Science

Boston University

Description

Write a paper comparing the advantages and disadvantages of the Cap and Trade system vs the Carbon Tax system. Include a section that clearly states which system or approach Nova Scotia plans to use 

Explanation & Answer:
800 Words
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Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.all done.

CAP AND TRADE VS CARBON TAX SISTEM

Cap and trade is a government-regulated program designed to limit the total level of releases
of certain chemicals, such as carbon dioxide, as a result of industrial activity.
Advocates of cap and trade argue that it is an interesting alternative to the carbon tax. The
carbon tax is a levy on energy products, or energy-related services more broadly, for which
there are carbon dioxide emissions into the atmosphere. Both are an attempt to reduce damage
to the environment without causing excessive economic problems for the industry.
These two systems have several advantages and disadvantages.
Let us first analyze the cap-and-trade system.
The cap-and-trade system was described as a market system. That is, it creates a trade value
for emissions. Its supporters argue that this kind of program incentivizes firms to invest in
greener technologies to get away from buying permits that will increase in cost each year. This
can lead to faster pollution abatement because the companies that reduce emission levels faster
are somehow rewarded and can sell their allowances to other companies. Because the
government can decide to auction emission credits to the highest bidder, cap and trade is
likewise a source of revenue for the government, as it has the authority to auction emission
credits to the highest bidder. This new revenue can cover infrastructure needs and social
programs, be put into cleaner technologies, or can even be a way to solve a state or national
budget shortfall. The free exchange system also gives consumers more choices. Consumers can
choose not to buy from non-compliant companies and do business with those that seek to
reduce their pollution levels. ...


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