Cap and Trade is so named because the government puts a "cap" on the amount of exports that domestic firms are allowed to "trade" with foreign nations.

Question

Quizplus · Accepted Answer

Cap and Trade is a policy that puts a limit, or "cap," on the amount of greenhouse gas emissions that industries are allowed to release. They can then trade, or buy and sell, permits to emit these gases, effectively incentivizing companies to reduce their emissions in order to save money on permit purchases. It has nothing to do with exports and foreign trade.

Cap and Trade Is So Named Because the Government Puts