Economics Carbon Trading Questions
The role of government in carbon trading is to establish and enforce regulations and policies that govern the trading of carbon credits. This includes setting emission reduction targets, creating a cap-and-trade system, and monitoring compliance with trading rules. Governments also play a crucial role in creating a transparent and efficient market by providing oversight, ensuring the accuracy of emissions data, and facilitating the verification and certification of carbon credits. Additionally, governments may provide financial incentives or subsidies to encourage participation in carbon trading and support the development of low-carbon technologies.