Advantages And Disadvantages Of California

California is the first state with a mandatory comprehensive cap-and-trade program. The program was introduced in 2012 to help the state lower its greenhouse gas emissions, by having businesses purchase permits for each metric ton emitted. Large companies that emit over 25,000 metric tons of carbon dioxide must comply with the cap-and-trade program. The permits companies have to purchase once they fall under the program are called allowances, and for every additional ton, an allowance must be purchased. An allowance gives companies a permit to emit one ton of carbon. All of the allowances available under the program is equal to the cap for that year and every consecutive year the cap declines, and allowances become scarcer. As the amount of allowances will decrease, the value of them will increase, making many companies look for ways to reduce emissions. Depending on the vulnerability of a

The following year the Clean Energy Future program was passed by another politician. The Australian cap-and-trade program was slightly different from California's and the European Union's because Australia's is focused on encouraging consumers to be more economical in their use of petrol and electricity. The program is designed to increase the price of petrol and electric products compared to other products, which causes consumers to buy less and be more economically conscious. It worked in the same way as the other schemes, putting a cap on the total amount of carbon allowed to be emitted yearly. The government would restrict the supply of emissions-intensive products, making them more expensive. The program was in place till 2014, when it was repealed because of a large amount of uncertainty surrounding the scheme, as well as, companies responding informally and many withheld from making large investments in emissions reduction