Green Biz's Gil Friend has a great primer called "The Nuts and Bolts of Carbon Trading" which is worth having a look at. It lays out the concepts and systems behind emissions trading, and offers some examples and critiques on the current schemes. Also pointed out is thie great Wikipedia entry - which states "Emissions trading is an administrative approach used to reduce the cost of pollution control by providing economic incentives for achieving emissions reductions." Read on.
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