The ultimate success of an emission trading approach depends on ____.
A) how well the stock market is doing
B) the supply and demand of clean energy
C) how the initial cap is set and how often it is lowered
D) what kinds of government regulations are in place
E) the availability of subsidies and tax breaks

Question

Quizplus · Accepted Answer

The initial cap and the frequency of lowering it are crucial determinants of how effective an emission trading approach will be. If the cap is set too high, it won't have a significant impact on emissions reduction, but if it is too low, it could harm the economy. Therefore, setting an appropriate cap and updating it regularly is vital to the success of this approach. The other options listed are also relevant to some extent, but not as critical as the cap-setting process.

The Ultimate Success of an Emission Trading Approach Depends on ____