An Emissions Trading System (ETS) is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. It sets a cap on the total amount of greenhouse gases that can be emitted by covered entities, allowing them to buy and sell emission allowances as needed within that cap to achieve compliance cost-effectively.

Emissions Trading System

market-based approach

controlling pollution

Economic incentives are mechanisms designed to influence the behavior of individuals and firms by aligning their interests with desired economic outcomes. They can be positive, such as subsidies and tax breaks, or negative, such as fines and penalties, and are crucial for addressing market failures and achieving policy goals.

economic incentives

Reducing Emissions

Pollutants are substances introduced into the environment that cause harm or discomfort to ecosystems or living organisms. They can be natural or anthropogenic, and their impact depends on their concentration, persistence, and the sensitivity of the affected environment.

pollutants

Cap on greenhouse gases

Covered Entities are organizations or individuals that must comply with specific regulations regarding the handling of protected health information (PHI) under the Health Insurance Portability and Accountability Act (HIPAA). They include health plans, healthcare clearinghouses, and healthcare providers that conduct certain transactions electronically.

CUSTOMIZE YOUR LEARNING

CUSTOMIZE YOUR LEARNING

Relevant Degrees