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Definition

cap and trade system

A cap and trade system is a market-based approach to controlling pollution that allows corporations or national governments to trade emissions allowances under an overall cap, or limit, on those emissions. 

 

Learn More About IT:
> The Environmental Protection Agency provides more information about a cap and trade system at EPA.gov.
> Jason Mathers explained how a cap and trade system might work in Catalyst Magazine.
> Matt Stansberry blogged about carbon cap and trade legislation at Server Specs.

This was last updated in June 2008

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