What is a Cap and Trade System? July 25, 2016 A Cap and Trade System is a trading system that is aimed at reducing greenhouse gas emissions. In this system, a limit or cap is set on emissions and is then decreased by small amounts at a time. Companies that produce fewer emissions can sell off some of their emissions allowance to other businesses. During the 1980s, the United States reduced sulphur dioxide and nitrous oxide, the key ingredients in acid rain, by using these…
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