cap-and-trade

(noun)

Cap-and-trade is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

Related Terms

Examples of cap-and-trade in the following topics:

  • Energy Policy

    • Under the proposed cap-and-trade program, all GHG emissions credits would be auctioned off, generating an estimated $78.7 billion in additional revenue in FY 2012, steadily increasing to $83 billion by FY 2019.
    • The administration of Barack Obama has proposed an aggressive energy policy reform, including the need for a reduction of CO2 emissions with a cap and trade program, which could help encourage more clean renewable, sustainable energy development.
    • Cap-and-trade is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.
    • Under the proposed cap-and-trade program, all GHG emissions credits would be auctioned off, generating an estimated $78.7 billion in additional revenue in FY 2012, steadily increasing to $83 billion by FY 2019.
    • Summarize the key provisions of a "cap-and-trade" approach to pollution reduction

  • Climate Change

    • This is causing polar icecap melting and a degradation of the protective ozone layer.
    • Another idea for slowing down carbon emissions is a cap-and-trade system.
    • This is a market-based system that would see limits, or caps, set on the amount of greenhouse gasses that could be emitted.
    • A market for these permits would be created so companies that produced lower levels could trade their permits with companies that wished to pollute at a higher rate.
    • Add to that the difficulty that is caused by highly influential business lobby groups, and it becomes apparent why it is so difficult to pass legislation to try and slow climate change.

  • Trade

    • U.S. foreign policy is characterized by a commitment to free trade and open borders to promote and strengthen national interests.
    • International trade is the exchange of goods and services across national borders.
    • The World Trade Organization (WTO) is an organization that was formed in 1995 to supervise and liberalize international trade .
    • In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge.
    • Common targets include the World Bank (WB), International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO) and free trade treaties like the North American Free Trade Agreement (NAFTA), Free Trade Area of the Americas (FTAA), the Trans Pacific Trade Agreement (TPPA), the Multilateral Agreement on Investment (MAI) and the General Agreement on Trade in Services (GATS).

  • Maintaining a Strong Economy

    • Among its tasks are gathering economic and demographic data for business and government decision-making, issuing patents and trademarks, and helping to set industrial standards.
    • Organizations within the Department of Commerce include the Census Bureau, the Bureau of Economic Analysis, and the International Trade Administration.
    • It prints and mints all paper currency and coins in circulation through the Bureau of Engraving and Printing and the United States Mint.
    • The Office of the United States Trade Representative is the government agency responsible for developing and recommending U.S. trade policy to the President, conducting trade negotiations at bilateral and multilateral levels, and coordinating trade policy within the government through the interagency Trade Policy Staff Committee (TPSC) and Trade Policy Review Group (TPRG).
    • The Federal Trade Commission promotes consumer protection and the elimination and prevention of anti-competitive business practices, such as coercive monopoly.The Small Business Administration provides support to entrepreneurs and small businesses by providing loans, contracts, and counseling.

  • Health Care Reform

    • Barack Obama called for universal health care and the creation of a National Health Insurance Exchange that would include both private insurance plans and a Medicare-like government run option.
    • In 2010, the Patient Protection and Affordable Care Act (PPACA) was enacted by President Obama, providing for the introduction, over four years, of a comprehensive system of mandated health insurance with reforms designed to eliminate some of the least-desirable practices of the insurance companies (such as precondition screenings, rescinding policies when illness seemed imminent, and annual and lifetime coverage caps).
    • The system preserves private insurance and private health care providers and provides more subsidies to enable the poor to buy insurance.
    • Premium cap for maximum "out-of-pocket" pay will be established for people with incomes up to 400 percent of the Federal Poverty Line.
    • Explain the elements and provisions of the Patient Protection and Affordable Act and discuss the history of health-care reform in the 20th century

  • China

    • Three issues of particular importance in Chinese-American relations are economic trade, the contested status of Taiwan, and human rights.
    • -China relations, three issues of particular importance stand out: economic trade, the status of Taiwan, and human rights.
    • Since China and the United States resumed trade relations in 1972 and 1973, U.S. companies have entered into numerous agreements with Chinese counterparts that have established more than 20,000 equity joint ventures, contractual joint ventures, and wholly foreign-owned enterprises.
    • The American trade deficit with China exceeded $350 billion in 2006, and is the U.S.' s largest bilateral trade deficit.
    • Among foreign nations, China holds the largest amount of U.S. public debt and has been a vocal critic of U.S. deficits and fiscal policy.

  • The International Monetary Structure

    • The international monetary structure involves international institutions, regional trading blocs, private players, and national governments.
    • The most prominent international institutions are the International Monetary Fund (IMF) , the World Bank, and the World Trade Organization (WTO).
    • The World Trade Organization settles trade disputes and negotiates international trade agreements in its rounds of talks (currently the Doha Round) .
    • For example, the Commonwealth of Independent States (CIS), the Eurozone, Mercosur, and North American Free Trade Agreement (NAFTA) are all examples of regional trade blocs, which are very important to the international monetary structure .
    • NAFTA, a free trade area between Canada, the U.S., and Mexico, is an example of the importance of regional trade blocs to the international monetary structure.

  • Deficit Spending, the Public Debt, and Policy Making

    • Deficit spending and public debt are controversial issues within economic policy debates.
    • Government deficit, on the other hand, refers to a situation when the government's expenses, including its purchases of goods and services, its transfers (grants) to individuals and corporations, and its net interest payments, exceed its tax revenues.
    • In the United States, taxes are imposed on net income of individuals and corporations by the federal, most state, and some local governments.
    • While both parties discuss reducing tax expenditures (i.e., exemptions and deductions), Republicans focus on preserving lower tax rates for capital gains and dividends, while Democrats prefer educational credits and capping deductions.
    • Republicans typically advocate Supply-side economics, which involves tax cuts and deregulation to encourage the private sector to increase its spending and investment.

  • The Election Year Budget

    • Budget committees set spending limits for the House and Senate committees and for Appropriations subcommittees, which then approve individual appropriations bills to allocate funding to various federal programs.
    • In general, Democrats favor the principles of Keynesian economics to encourage economic growth via a mixed economy of both private and public enterprise, a welfare state, and strong regulatory oversight.
    • Disagreements between Democratic President Bill Clinton and Republicans led by Speaker of the House Newt Gingrich led to the United States federal government shutdown of 1995 and 1996.
    • The failure of Congress and the President to enact the remaining appropriations legislation led to government shutdowns during November 13–19, 1995 and December 15, 1995 through January 6, 1996.
    • His proposal called for 74 billion in additional discretionary spending above the sequestration caps set in place.

  • Interest Groups vs. Political Parties

    • Political parties are lobbied vigorously by organizations, businesses, and special interest groups such as trades unions.
    • Political science and sociology have developed a variety of theories and empirical research on social movements.
    • When the Labor Party was first formed, it was largely funded by trade unions.
    • For example, in the issue of free trade, some corporate lobbyists seek to eliminate or dismantle tariffs, promoting free trade and the free movement of goods and services.
    • If tariffs are reduced or eliminated, then American farmers are forced to compete with farmers from other trading countries.