Is a cap and dividend program the same as a cap and trade system?



  1. 0 Votes

    No it’s different. Caps can be placed either on the supply end of things or on the demand end of things. Cap and trade put the cap on the demand side or on the emitter, and cap and dividend puts the cap on the suppliers. Once the suppliers must pay for a permit to sell carbon producing products, they will pass along the price increase to their customers, and there will build up a surplus of funds in the government’s hand that they will then pay back to the general population. In cap and trade the revenue created from permits goes to buinesses that have extra permits.

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