Cap-and-trade versus carbon tax: Is cap-and-trade better at reducing emissions?

  • Yes, because it sets a limit.

    Yes, cap and trade is better at reducing emissions than the carbon tax, because the cap and trade systems sets limits for the number of emissions. Under the carbon tax system, an unlimited number of people can pollute, if only they are willing to pay the tax. With the cap and trade system, there is a guarnatee that pollution will stay below acceptable limits.

  • Rewards create strong incentives.

    Cap-and-trade is a reward based system, allowing those who use vehicles and machinery that emit emissions to opt for a chance to reward their selves and to make them feel better about their selves. Taxes are looked upon as a negative thing in the united state, and are often a top of rebuttal. However, if one offers those same citizens a rebate or grant of money for using energy efficient objects, they view it as money in their pocket instead of a nasty tax that causes money to come out of their pocket. Rewarding citizens for purchasing energy efficient items is a strong incentive.

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