Cap and Trade Essay Example | Topics and Well Written Essays - 1250 words

Cap and Trade - Essay Example As per the Cap and Trade law each entity has got a limit to the amount of emissions it can emit, which is set in the form of tons. Because of this the emission to the environment can be easily measured and traded in the pollution market. (www.edf.org ) Another element of the Cap and Trade law, allows the buyers and sellers of the allowances to trade internally. Entities are also given the power to bank the allowance which is not used for future use. (www.edf.org ) The system also makes it mandatory that, each entity has to be very much truthful regarding the number of allowances that it holds and the number of tons that it had emitted to the atmosphere which should be equal after a given period of time. (www.edf.org ) Thus this law is totally aimed at the industries, which are considered as the main contributors of atmospheric pollution in America. The business establishments in America will surely be affected by such a law, since it will put a curb to the level of pollutants they can emit. This could in turn affect the production output of such industries and automobile sector because they need to pay higher, for buying allowances. This could very well result in an increase in the prices of consumer products. The American government is the one who is in favor of the Cap and Trade law, since it will be another way to get money from the general American public and the industrial sectors. (www.washingtonpost.com ) There have been many sectors in the American industry, which are against the Cap and Trade system and these are mainly the Oil refining sector and Trucking industry along with the utilities sector, which will mainly face the brunt of this law. (www.environmentalleader.com ) Â