Question

Discuss one reason why a cap and trade market is more difficult to implement for water versus air emissions

Discuss one reason why economists prefer a gas tax to a standard on miles per gallon of vehicles

Answer 1

1.Since the 1980's cap and trade has grown substantially.The provision for trading of allowances is the key to achieving desired emission reductions at a lower cost .

Cap and trade market is more difficult to implement for water than air.One of the main reason for this is

*Difference in the nature and composition of water pollutants which creates difficulty in Measurement.

Water pollutant is a way problematic than air pollution.Pollutants end up widely dispersed.It tis easy to find out how much carbon dioxide is coming out of industries.water pollution is a way trickier.Even though regulators can track the output of sewage treatment plants or industrial sites with their own discharge permits, but it's more difficult to tell exactly what is coming from such non-point sources Such as rural farm fields or City stormwater.

2 Gas taxes are preferred by the Economists because

* Gas taxes are more effective than vehicle standards

Gas taxes are cost effective than vehicle a standards.Vehicle standards work slowly,as manufacturers start selling more efficient vehicles, and people retire their older cars and trucks.such a turn involves tame lag.By contrast,higher gas tax kicks in immediately,giving people incentive to drive less and buy more fuel efficient vehicles,thereby reducing the gasoline consumption effectively.