A cap-and-trade system does what?
A)Caps the amount that energy companies can charge the consumer.
B)Puts a price on pollution.
C)Caps the amount of money that the Bank of Canada can allow into the Canadian economic system.
D)Taxes the end user of energy products.

Question

Quizplus · Accepted Answer

A cap-and-trade system puts a price on pollution by setting a limit on the amount of pollution that companies can emit. Companies then have the option to either reduce their emissions to stay under the limit or purchase credits from companies that have reduced their emissions below the limit. This incentivizes companies to reduce their pollution levels and creates a market for emissions credits. The system does not cap the amount that energy companies can charge consumers, cap the amount of money that the Bank of Canada can allow into the Canadian economic system, or tax the end user of energy products.

A Cap-And-Trade System Does What