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Pros And Cons Of Cap And Trade

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Pros of Cap and Trade Improved Economic Efficiency With the alternative proposal of a carbon tax, the economy is inefficient due to a set unit tax on pollution emission for firms of every size (likely making smaller firms worse off). Though the cap and trade system is flawed, the economy will shift to a more efficient point when the cost of reduction for every firm is determined by the relative amount of emission credits the firm needs. Additional revenue and profit Unneeded emission credits will be sold from one firm to another, creating an additional source of profit for the industries; in turn, renewable energy sources will become more attainable. The government is also subject to profits on what is called the “right to pollute”. However, …show more content…

Firms will purchase more credits to pollute than they need, making these credits inactive in the industry and non-beneficial to society, decreasing them in value. The firms with excess credits will then have the ability to sell them to firms who need them for a price that is higher than it’s value. The instability of price and value can be seen as risky and undesirable. Opposing benefits of a carbon tax A tax on carbon emissions would lead to a larger market for economic efficiency and renewable resources due to the variable abatement cost associated with a tax. However, if firms find a way to manipulate the cap and trade policy by making a profit, there will be no benefit associated with switching to renewable resources. Secondly, the efficiency gained from a carbon tax could lead to more emission reduction than originally planned, while cap and trade is set with a specific amount of carbon pollution allowed. Increased prices The goal of Cap and Trade is the lowest possible cost to maintain a certain level of acceptable pollution. If the industries’ intentions are to lower carbon emission rather than to make a profit, it will, at first, require higher costs of production for more efficient, newly discovered energy sources, thus increasing the price of their

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The Manifesto calls for Canada to source its electricity from 100% renewable energy in the next two decades and transform to a 100% clean economy by 2050. Other demands include expanding public transit and creating a high-speed rail powered by renewables, curtailing trade deals, expanding the low-carbon sector of the economy, and fostering a localized agriculture system (“The Leap Manifesto”). The Manifesto also suggests the money needed to finance this economic shift is available if governments are willing to shift their policy directives. Based on the “polluter pays” principle, Leap argues a carbon tax, increased resources royalties, and an end to fossil fuel subsidies, among others, can generate enough revenue for Canada to begin a new phase in its economic development

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NAFTA, The North American Free Trade Agreement, is a treaty between Canada, Mexico and the United States making NAFTA the world’s first free trade agreement. The NAFTA agreement is 2,000 pages long, with 22 chapters. NAFTA has many important purposes. First, eliminates tariffs on imports and exports between the three countries, which increases investment opportunities. This is because, the taxes that cause foreign goods to be more expensive are eliminated.

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An example of this would be car companies having to release a certain emission rate

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a. What is a good or service market that might be affected limiting pollution via the cap and trade policy as described in the article? Explain. Being provided with studies on automobile emissions and ways to improve the environment, it is the opinion of this writer that the automobile industry could be greatly affected by California limiting pollution via the cap and trade policy. Companies such as Toyota, Nissan, and Subaru are providing vehicle choices that contribute to lowered emissions. With the introduction of the Prius hybrid by Toyota, sales for the vehicle proved to be the greatest in areas such as California because of the C02 factors, and, therefore, the demand by consumers increased.

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This program would tax the general population and businesses on their excess use of fossil fuels. The money generated from this tax has been consistently argued about were it should be spent, however, a well liked solution has begun to emerge; putting the money towards renewable energy research projects. This would begin to break the debt-based fossil fuel cycle by providing consumers with another alternative (Conners). A carbon tax would force factories, businesses and the general population to become aware of their actions, helping to “change destructive environmental behaviour” (Conners). With an expense placed on carbon emissions, there would be a drop in extreme consumption of fossil fuels, as a result, people and businesses would adjust to more sustainable methods of

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An example of a working cap and trade system is the Clean Air Interstate Rule (CAIR) issued by the environmental protection agency (Depledge 2005). This system reduces the harmful emissions of sulfur dioxide and nitrogen oxides by 70 percent. It requiring states to have their power plants comply with administrated interstate cap and trade. We decided we need to model this bill after a system that has been shown to work, in order to get congress on

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As I tell him the news of Giles, I see his thoughts. I vision that he hopes to die with such courage and loyalty to God. He begins to think about his death and him leaving to the beautiful and luxurious Heaven. I do not want this for him, aye I want him to live. I am fighting my thoughts.

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By reinforcing laws and increasing the number of professional government inspectors, any loopholes and acts of bribery can be eliminated. Although regulating the carbon dioxide levels is important, nonetheless, nothing can truly be achieved if production has to stay the same while demand increases; thus, to make this scheme effective, a greener, renewable energy source is needed. Alternative energy is always a subject that is almost completely ignored by the Republicans, but mentioned by a handful of Democrats. But so far any significant effort, such

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For example, the augmentation of delivery services with the addition of drones would have a significant increase in productivity and benefit both the company and the consumer. By maximizing the amount of deliveries made in a short period of time and therefore decreasing the time it takes for customers to receive a package, customers are more likely to buy more products online, which boosts the sales of companies like Amazon and results in economic growth. According to an online article from Time, increases in productivity, or efficiency, lead to more consumption, and therefore more economic growth. When people save time and costs through efficiency, they buy more and are therefore responsible for more carbon emissions; however, this applies to transportation that emits greenhouse carbons like carbon. Drones, on the other hand, have minimal environmental impact by not emitting carbon, so the same principle is true, just without environmental consequences.

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Also, Peterson argues that with the implementation of the carbon tax, other taxes will be replaced (Peterson 2015, 154). Again, he leaves the reader questioning what taxes Peterson wishes to replace with a carbon tax in order to evaluate whether such a replacement is even feasible. Moreover, a potential consequence of a carbon tax in the form of pollution permits is the steering away of investors to developing economies with

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The biggest problems with the carbon tax are the adverse effects on consumers and Prairie Provinces. Consumers would be hit with a larger tax bill for using appliances they have become dependent on and higher prices on gas for their cars. The Prairies get a large part of their GDP from oil and other fossil fuels and a carbon tax would hurt them substantially. These are the two major sticking points that I see in applying the carbon tax on a national level.

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Introduction Fair trade is the concept of paying small farmers in developing countries better prices and substitutions to improve their producing and living standards. The World Fairtrade Organization (WFTO) defines it as “a trading partnership [...] that seeks greater equity in international trade. It contributes to sustainable development […] of marginalized producers and workers – especially in the South.” [Sarcauga, 2015] This assignment will describe some positive and negative factors of fair trade to clarify whether it is as fair as it states.

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These are some for the barriers and competitiveness issues which environmental regulation, taxes and policies encounter with the respective stakeholders during policy making and during policy implementation. Therefore, a balanced approach has to be achieved; and not to focus on avoiding environment damage only, while destroying industries and forgoing the opportunity of economic growth which creates tax base for government’s revenues. The policy or package will also have to guarantee that the polluter is charged or taxed accordingly and not the affected society at large to be bore the environmental damaging costs. According to Green Fiscal Commission 2009, there are two criteria’s which can be used to assess the effectiveness of environment taxes.

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Thus, an unpopular tax on a product that produces negative externalities, such as car use that creates environmental damage, may be avoided due to the fact that the government is afraid of losing support from the

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