Chapter 16. Cap and Trade

EIA Activity: Cap and Trade

Click on the links on the right to answer the following questions.

  1. Question

    Use Link 1 to answer the following questions. True or False: A carbon tax is an example of s a quantity instrument.

    		A.
    		B.

  2. Question

    True or False: A cap-and-trade scheme is an example of a price instrument.

    		A.
    		B.

  3. Question

    True or False: A carbon tax is set to cover the costs associated with pollution.

    		A.
    		B.

  4. Question

    Use Link 2 to answer the following question. True or False: Carbon emissions in China rose from 1,500 to over 8,700 million metric tons between 1980 and 2011.

    		A.
    		B.

  5. Question

    Discuss the costs vs. benefits of using both carbon taxes and cap-and-trade.
    Your response will be graded by your instructor.
    Discuss the costs vs. benefits of using both carbon taxes and cap-and-trade.

  6. Question

    Which concept is a better way to price carbon: using a carbon tax, or a using cap-and-trade scheme? Discuss.
    Your response will be graded by your instructor.
    Which concept is a better way to price carbon: using a carbon tax, or a using cap-and-trade scheme? Discuss.

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