What is the main idea behind cap and trade?



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    Cap and trade is a policy developed by the EPA to cap the amount of emissions that a source can emit. But since some companies may have lower emissions than they are allowed to have they can trade those extra emissions to a company that will be going over their emissions allowance.  Purchasing extra emissions allowances though is expensive which means that hopefully the cost will deter sources from wanting to go over emissions allowances in the future, thus lowering emissions in the long run hopefully.

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