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Should we continue using cap and trade?

Cap and trade, or emissions trading, is where the government sets an overall upper bound on emissions and gives out a limited number of permits to allow for that pollution to be generated. Companies that produce pollution are required to hold the number of permits equal to their pollution emissions. Companies can either choose to use all its permits or emit less and sell their excess permits. Companies that want to pollute more can buy those excess permits, but there are a fixed number of permits in circulation.

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