Why would location-specific taxes help alleviate the problem

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Reference no: EM133631695

Problem: What are the major advantages and disadvantages of the cap-and-trade program? Why are hot spots a potential problem with market-based instruments? Why would location-specific taxes (or trading ratios in a cap-and-trade program) help alleviate the problem? How might you expect California's new additions to the standard cap-and-trade model to affect eventual emissions? How might they affect the cost-effectiveness of the cap-and-trade system, relative to a uniform performance standard? Reflection: Include a paragraph in the initial response in your own words using microeconomics terminology, reflecting specifically on what you learned from the assignment and how you think you could apply what you learned in the workplace or everyday life.

Reference no: EM133631695

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