Who wins and who loses if we pass the cap and trade?



  1. 0 Votes

    Good question, Amya. 

    I’m afraid it is not as simple as someone winning and someone losing.  The three main players who stand to “win” or “lose” would be the companies involved, the consumer, and the environment.  As far as companies go, cap and trade can be a good thing because it can make them money if they are able to cut their CO2 output.  It can be looked at as a bad thing for some companies, too.  Once their cap is set, or the amount of CO2 they can produce is set, if their company expands and they need to produce more CO2, then they will have to buy credits to be able to do so.  As far as the consumer goes, it has been argued that the cost of having to buy carbon credits may trickle down to the consumer, making things more expensive for us to purchase.  This isn’t a very good thing, but it also isn’t an absolute.  As far as the environment goes, there are also pros and cons.  It seems obvious that cap and trade may be beneficial to the environment, because it is lowering CO2 output, but it can also be looked at as a negative thing.  By charging companies money to output CO2, they are potentially less likely to invest money into greener technologies.

    So you see, it is not a very straight forward issue.

    Hope this helps!

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