Reference no: EM13967122
Cap and Trade versus Carbon Tax
A number of solutions to combat carbon emissions and mitigate global climate change have been proposed. However, solutions should be scrutinized for a number of factors including their potential to slow atmospheric emissions, their economic influence, and their political backing, before being introduced or implemented nationally. Two solutions often debated, cap and trade and a carbon tax, are discussed at length in the beginning of Chapter 3 of your text. Additionally, you should watch the video, Carbon Tax and Cap and Trade for a more detailed analysis of both concepts. Based on these materials, write a paper summarizing both solutions and recommending the better option. In your paper:
a. Summarize both cap and trade and a standard carbon tax, making sure to thoroughly describe the aspects of each policy that can be manipulated (e.g., how to distribute permits, who to tax, etc.).
b. Compare the carbon reducing potential of the two plans and analyze which holds the greater potential to slow global climate change and why.
c. Compare the economic impact of the two plans and include an evaluation of which policy will likely lead to better economic outcome and why.
d. Briefly compare the political arguments for and against the two plans and include an evaluation of which is more likely to pass through Congress and be implemented into U.S. law and why.
e. Based on your analysis above, provide a recommendation for either cap and trade or a carbon tax and briefly describe why you have chosen one over the other.
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