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This approach is based on credits which are issued to corporations by governments or a set authority. A corporation is issued with a set limit of the pollution level that they can cause in a given region. If it can achieve that, they can transfer their credits to another company for a given fee (Burney, 2010). Therefore, cap and trade approach creates a marketing system for those companies that are better or are able to reduce their emissions and at the same time is punishes those companies that can not be able to do so financially.
On the other hand, carbon tax is a tax imposed on carbon fuels. This approach offers corporations and governments a cost effective way of reducing greenhouse emissions in to the atmosphere. Carbon tax approach is mostly applied in OECD countries based on energy products and motor vehicles (Burney, 2010). There has been increased opposition to this approach citing concerns that it can lead to firms relocating and people losing jobs.
On cap and trade approach, there are no emissions costs but the influence is on the broader economy. Therefore, this approach favors the corporations. That means that whenever anyone at a personal level does any mistake he or she will not be involved. On the other hand carbon emissions are always monitored by the carbon in the fuel (Burney, 2010). I also find that very far fetched because homesteads emit as much greenhouse gases as corporations. Therefore, in my opinion I believe these measures are not enough to combat climate
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The scheme required that companies generating up to 25,000 tons of carbon dioxide equivalent per year were required to purchase emission permits. However, the carbon taxes have impacted severely on local production businesses as they have been forced to absorb all costs occurring due to the tax and this makes it difficult for them to compete globally.
The author states that the Cap and Trade has been enforced by most of the nations on industries so as to check and bring under control the level of harmful atmospheric pollutants like carbon dioxide, which results in accumulation of greenhouse gases. Most of the nations have adopted this Cap and Trade method, for controlling the pollution.
It has established laws that aim to protect the ecosystem, endangered species, natural resources, and wildlife. For instance, it uses economic incentives such as taxes, fees, and permits to encourage adherence to environmental
It has suffered a massive drought for the past three years due to the lows of Californias river and reservoir levels2. It became so severe that the government and the federal state cut off the water supply that runs from (sierras to the valley)
There is therefore a greater need to integrate the spirit of environmentalism in every aspect of development to eventually bring about a sustainable world. There is therefore need to value our environmental systems. This has been made possible by the