cap-and-trade
Pollution permit system
Cap-and-trade is an environmental policy system that sets a limit (cap) on total emissions of a pollutant, then issues permits that companies can buy and sell (trade) among themselves.
Companies that reduce emissions below their allowance can sell excess permits to heavier polluters: The EU's cap-and-trade system covers power plants and factories.
The market mechanism aims to achieve emission reductions at lower overall cost than direct regulation.
Substances released into air
- carbonSixth element, atomic symbol C
- allowancesPermitted amounts or stipends
- permitsGrants formal authorization
- regulationOfficial rules governing conduct
legislation · climate · Kyoto · EPA · compliance · quota · limits · mandate
Room's upper surface
- baselineStandard for comparison
- thresholdPoint of beginning
- benchmarkStandard for comparison
- monitoringOngoing observation of something
verification · reporting · measurement · tracking · registry · penalty · fine · surplus
Competitive public sale
- tradingExchanging for value
- creditsUnits toward graduation
- exchangeMutual giving and receiving
- priceMonetary value assigned
allocation · offset · futures · commodities · speculation · buyers · sellers · banking
Environmental harm from waste
- greenhouseClimate-controlled plant enclosure
- CO2Carbon dioxide formula
- sulfurYellow combustible element
- dioxideBinary compound, two oxygens
nitrogen · smog · ozone · atmosphere · decarbonization · mitigation · sequestration · footprint
Reward encouraging action
- efficiencyProductive without waste
- cost-effectivenessValue relative to expenditure
- externalityUncompensated effect on others
- innovationCreating something original
investment · competitiveness · jobs · growth · burden · distributional · dividend · rebate
emissions
Substances released into air
- carbonSixth element, atomic symbol C
- allowancesPermitted amounts or stipends
- permitsGrants formal authorization
regulation · legislation · climate · Kyoto · EPA · compliance · quota · limits · mandate · federal
ceiling
Room's upper surface
monitoring · verification · reporting · measurement · tracking · registry · penalty · fine · surplus · deficit
auction
Competitive public sale
price · allocation · offset · futures · commodities · speculation · buyers · sellers · banking · volatility
pollution
Environmental harm from waste
- greenhouseClimate-controlled plant enclosure
- CO2Carbon dioxide formula
- sulfurYellow combustible element
dioxide · nitrogen · smog · ozone · atmosphere · decarbonization · mitigation · sequestration · footprint · particulates
incentive
Reward encouraging action
- efficiencyProductive without waste
- cost-effectivenessValue relative to expenditure
- externalityUncompensated effect on others
innovation · investment · competitiveness · jobs · growth · burden · distributional · dividend · rebate · transition
- carbon tradingcarbon credits, carbon offsets, emissions trading, carbon market, carbon markets
- Environmental LawEPA, pollution control, emission standards, waste disposal, wetland protection
- pollution controlpollution control, emissions, air filter, emissions control, air purifier
- offset meaningsoffset printing, setback, stagger, shift, counterbalance
cap-and-tradeemission standards
Legal limits on pollutants released
laissez-faire · deregulation · performance standards · prohibition · free market