What are some alternatives to carbon taxes for reducing emissions?
There are several alternatives to carbon taxes, such as cap-and-trade systems, renewable energy subsidies, and direct regulations on emissions.
Can you explain how cap-and-trade works?
Sure! Cap-and-trade sets a limit on emissions and allows companies to buy and sell permits to emit a certain amount, incentivizing reductions.
What about renewable energy subsidies? How do they help?
Renewable energy subsidies lower the cost of clean energy technologies, making them more competitive with fossil fuels and encouraging their adoption.
Are there any drawbacks to these alternatives?
Yes, some drawbacks include potential market manipulation in cap-and-trade and the risk of government dependency on subsidies.
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