What is an emission cap?
The
emission cap is a government standard that determines the maximum amount of a particular pollutant that can be produced. The aim of introducing emission cap is usually to reduce the overall level of emissions by determining the standard, which forces the industry to reduce their production of various pollutants. The emission cap is usually discussed in the context of the sovereign and trading system, the technique that can be used to control and regulate emissions. Then they set a goal to achieve and determine how quickly the production of this pollutant can be reduced, taking into account technological restrictions, costs and other factors. If the emission cap is too radical, it will not be possible to meet it and the system may disintegrate. On the other hand, if it is too lenient, the reduction of emissions will not be motivated and the goal of reducing pollutants will not be realized.
According to the industrial and trading systems are industrial gridImpress, which generate pollutants, the provision of credits that allow them to create a specified amount of the pollutant. The amount of distributed credits contributes to the overall contribution under the emission ceiling. If the company creates less emissions than permitted in its credits, it can sell or trade with excess credits by a company that produces more pollutants than allowed in the system. Business credits can help companies as a whole to achieve emissions.
The emission cap setting is to create a motivation to reduce pollution by ending other credits that can be sold or traded in an open market. However, the CAP system has a serious defect, which is that emissions need to be monitored. Syston monitoring can be expensive to introduce and maintain, and this can cause it to be difficult to implement and enforce the real world emission ceiling. This concern has been raised as a criticism of CAP and trade designs people who feel that such sysThemes eventually fail.
The clear advantage of the emission ceiling is that it sets a clear goal for reducing emissions and at the same time provides flexibility that allows companies to adapt to the tightening of emission standards. The system also supports innovations and competition.