Therefore, total emissions are reduced over time, which is seen in the EU. A period of emissions was to be reduced by 5% with 199- levels while the next set of years were to reduce emissions by 20%. As a result, the cap-and-trade system offers the policymakers and those concerned with the environment a definite emissions target.

A cap-and-trade strategy makes sure that the short-run resources of abatement are assumed first since firms have the incentive and motivation to reduce their emissions levels when they can accomplish this at a price lower than the market. The market price rewards firms should they make the reductions but are punished if they don't. The cap is to ensure environmental sanctity and the trade advocates minimum cost. Therefore, this method minimizes waste, and it is individual firms that offer a cheap source of abatement to reduce gas emissions. Cap-and-trade method also maintains liberty...
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