EXPLAINER | Cap-and-trade
5 stories


Cap-and-trade is a market-based way to reduce pollution. It was first used successfully in the U.S. in the 1990’s, under former President George H.W. Bush to reduce sulfur dioxide, which causes acid rain.
Around the world,  more than 40 governments, in an effort to combat climate change, have put some sort of price on carbon—either by directly taxing fossil fuels, implementing cap-and-trade, or doing both. In the U.S., cap-and-trade systems are in place in California, and in the Northeast.

Pennsylvania is currently studying a citizen-led petition to implement an economy wide cap-and-trade system, modeled on California’s.

Here’s a brief explainer:

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