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Who stands to benefit the most from cap-and-trade systems, and who may face significant challenges?

Jameel Ogle

Cap-and-trade systems are plans to reduce pollution. The way they work is that the government sets a limit on how much pollution is allowed. Then, businesses are given permits to release a certain amount of pollution. If a business pollutes less than its permit allows, it can sell the extra permit to another business that needs it. This creates a market for pollution permits.

But who benefits the most from this system, and who might find it hard?

There are a few groups of people who could benefit from cap-and-trade systems. One group is businesses that pollute less than their permit allows. They can sell their extra permits and make some money. Another group is people who care about the environment. Cap-and-trade systems can help reduce pollution, which can improve air and water quality and protect wildlife.

However, there are also groups of people who might find it challenging. One group is businesses that pollute more than their permit allows. They will have to buy extra permits or find ways to reduce their pollution. This could cost them money. Another group is people who live near sources of pollution, like factories or highways. Cap-and-trade systems might not do enough to reduce pollution in their neighborhoods.

In summary, cap-and-trade systems can help businesses that pollute less than their allowed level, people who care about the environment, and possibly even the government. However, businesses that pollute more than they're permitted might find it costly, and people who live in areas with heavy pollution might not see immediate changes.