The cap and trade approach to climate change has validity because:

Question

Quizplus · Accepted Answer

All of the given reasons make a strong case for cap-and-trade systems. By implementing cap and trade, polluters pay for the amount of emissions they produce, and the market determines the price of carbon credits. As companies tend to take seriously everything identifiable that affects their bottom line, they will be motivated to reduce emissions to avoid incurring high costs for excess emissions. Additionally, a cap and trade system is seen as preferable to a system of taxation, which could be perceived as a burden on businesses.

The Cap and Trade Approach to Climate Change Has Validity