What are the alternatives to carbon tax?
There are several alternatives to carbon tax, including cap-and-trade systems, renewable energy subsidies, and regulatory approaches.
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 of carbon.
What are renewable energy subsidies?
Renewable energy subsidies are financial incentives provided by the government to encourage the development and use of renewable energy sources.
Are there any drawbacks to these alternatives?
Yes, some drawbacks include potential market volatility in cap-and-trade and the risk of government inefficiency in managing subsidies.
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