Cap and Trade Pros and Cons

Cap and Trade Pros and Cons


Nowadays, cap and trade is not totally popular to people in different countries. Actually, this is the shorthand expression in a certain rule that is needed by companies. It is can also produce a specific pollutant that can accumulate and handle the overall production in a prearranged value. In this case, businessmen can sell or purchase permits that let a specific level of pollution to move freely. If you want to a clearer explanation about cap and trade, the pollutant here is the carbon dioxide. The focus of this cap and trade is the pollutants around the environment and it is not limited to carbon dioxide.



The Pros of Cap And Trade

1. Allows the people to purchase carbon credit. Due to the pollution that is caused by oil and gas companies, you must purchase carbon credits. The rate of this credit is similar with the Heritage Foundation. This will surely pass in the gas pump that is often used by lots of people.

2. The profits that carbon gain will immediately invested in some energy sources. This is also called the green investment. The profits gained from the carbon credits will be automatically invested in energy sources such as nuclear power, wind turbines, and solar power.

3. Lessen carbon release. The system of cap and trade is to hold back the massive quantity of pollutants that often let loose by most energy companies. When these companies purchase carbon credits, they can produce their product without giving issues to Mother Earth.

4. Decreases climate change harmful effects. Due to its vision, it can really lessen the harmful effects of climate change to people, animals, and other living things in this world.



The Cons of Cap And Trade

1. Carbon trading can cause coal, gas, and oil dependency. According to Larry Lohman (writer), carbon trading encourages the industries to be addicted to use gas, coal, and oil due to its cheap offset.

2. Has big effect in the rate of energy. It is true that cap and trade can cause a significant effect in the energy rate. The rate of energy will increase continuously after several years. This will surely give lots of problem to people primarily to consumers.

3. The policy of it is not the same in several countries. The policy of cap and trade is not similar as when you compare it to other countries. Some consumers of fossil fuels are also affected by the increase rate of energy.

4. Has huge tax trouble. Most cap and trade users are having problem with their tax. They are paying huge amount of money in their tax that’s why most of them are deciding to stop utilizing cap and trade.

How Do You Feel About Cap And Trade

Cap and trade really give lots of the helpful benefits to the people. However, due to its downside, most users get disappointed on it primarily on the huge amount of their tax. Nowadays, there are many people are still utilizing it due to the benefits that it delivers to them.