Recall the application of how the European Union has a cap-and-trade system for CO2 allowances.The demand of allowances is determined by different factors such as level of economic activity,fuel prices,and the weather.

Question

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The demand for CO2 allowances in the European Union cap-and-trade system is determined by factors such as level of economic activity, fuel prices, and weather conditions.

Recall the Application of How the European Union Has a Cap-And-Trade