Unit 20

Question 1

What are cap and trade schemes?

Answer 1

Cap and trade schemes set a limit on a particular type of pollution and then issue pollution permits to the total of that limit which can be bought and sold between firms which pollute.

Question 2

What is a trade pollution permit/pollution permit/pollution credit?

Answer 2

This is a permission issued, usually by the government, to allow a fixed amount of pollution to be created; this permit can be used by the owner or sold to another firm.