Microeconomics

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Yajaira Marcano
Professor Badi Sabet
ECO 2023
April 15, 2011

There is a significant debate between proponents and opponents of environmental issues at the moment in our nation. 1)Please give your opinion concerning this issue.
2) Please explain what the Cap-and-Trade Bill is.

The environment is essential in any modern economy, healthy and prosperity. It is therefore necessary for governments to recognize that environmental economics play an important role in the design of environmental public policies. Acording to the Center for American Progress: “the Cap and- trade Bill issue the main goal of the government is to propose a law to reduce the level of harmful greenhouse gas emission by trying to help the economy go green in a cost-effective manner”. Many people think that Cap and Trade is just another tax source for the government to grow itself and waste money. Moreover, increasing taxes to business will bring price increment of its services; in order to offset the increment cost. However, these financial resources could be used to achieve critical public policy objectives related to climate change mitigation and economic development.

Cap and trade is in fact a tax on emissions, therefore, each company will have a limit on the amount of gas that can emit. The company must have a permission of emissions per ton of Cabon Dioxide that relased into the atmosphere. According to the article of Green Energy News, “Basically, the cap-and-trade bill seeks to cut down drastically on the amount of carbon emissions companies are able to release into the atmosphere.”

Acording to the article of WiseGeek: “A Cap and Trade system is a method for managing pollution, with the end goal of reducing the overall pollution in a nation, region, or industry.” The Cap and trade system has been introduced by many proponents to control control pollution in an effective way. This is one of the systems that governments can use to reduce Carbon Dioxide,...
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