Cap and Trade (using Marketable Permits to address Negative Externalities)

This video discusses cap and trade, which is a system of marketable permits designed to address a negative externality such as pollution. With cap and trade, a quota is placed on the maximum amount of pollution and then firms are given permits that allow them to legally pollute a certain amount. Firms that invest in clean technology can sell their pollution credits to other firms instead of using them. This video uses a graph to show how a system of cap and trade and a corrective tax theoretically achieve the same outcome (the socially efficient equilibrium).
This video was funded by a Civic Engagement Fund grant from the Gephardt Institute for Civic and Community Engagement at Washington University in St. Louis.-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* edspira.thinkific.com
-
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: podcasts.apple.com/us/podcast...
* Spotify: open.spotify.com/show/4WaNTqV...
* Website: www.edspira.com/podcast-2/
-
GET TAX TIPS ON TIKTOK
* / prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
* www.edspira.com/index
-
CONNECT WITH EDSPIRA
* Facebook: / edspira
* Instagram: / edspiradotcom
* LinkedIn: / edspira
-
CONNECT WITH MICHAEL
* Twitter: / prof_mclaughlin
* LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
* www.edspira.com/about/
* michaelmclaughlin.com

[@malikyoung2568]

Thank You sooo much. This absolutely helped me to grasp the concept. Many blessings to you.

[@lailatarazi3048]

Thank you a ton. this helped me understand the definition and use of cap and trade and marketable permits.

[@Edspira]

Glad it was helpful!

[@beatricemumbi7579]

This has really helped me

[@papphang]

Did anyone tell you that you sound like Tyler Furguson

[@PabloEscobar-ez8zr]

guys stop polluting the ponds its not socially eFISHient 😁 yea i dont like me either lol

[@BlokenArrow]

Should be cap without trade.

[@filippo4755]

no