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  • Published: Feb 9th, 2010
  • Category: USA
  • Comments: 2

Carbon Tax: A Unique Twist


An alternative to a Cap and Trade policy to limit greenhouse gas emissions is a tax on emissions, referred to as a Carbon Tax. A primary difference between a carbon tax and cap and trade is that cap and trade sets carbon emissions limits and then lets the marketplace determine the price of carbon. Conversely, a carbon tax sets the price of carbon and lets the marketplace determine the level of emissions reduction.

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