Economic Sustainability Of Cap And Trade System In The Us

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Economic sustainability of cap and trade system in the US

Market-based approaches to sustainable management of water resources have the potential to reduce water use in areas with water shortages. In western North America, the underestimation of water contributed to the excessive consumption of water, so we propose the establishment of water market, where prices reflect the actual scarcity of water. This market structure will ensure that water reaches those who value it most and that excessive use of water for human well-being unimportant minimized. Economic incentives for improving efficiency and water conservation will enhance the effectiveness of sectoral policies within our comprehensive plan for sustainable water management.

Although the markets that the price of water based on the deficit can help with conservation efforts on a large scale water market alone can not completely solve the environmental and social impacts of excessive water consumption. In developing our recommendations for policies for the sustainable management of water resources, we strive for sensitivity to the needs of low-income persons who may be unable to pay for water at higher prices. To mitigate the regressive nature of the increase in water prices, our proposal would be revenue neutral, the majority of income received from higher prices for water will be distributed to low-income individuals and others facing financial difficulties due to rising water prices. The remaining funds will support the means to strengthen, expand, and maintain the achievements in the field of sustainable water resources management, including but not limited to efforts in research and public awareness. Our economic plan for water resources management encompasses the U.S., Canada and Mexico, in full, but because the environmental consequences of water shortages, usually local, we tailor specific policy instruments at our wider policy framework for sustainable water management at local and regional levels.

Typical Cap-and-Trade Flow Chart

The need for domestic policy United States that seriously addresses climate change is increasingly evident. CAP and trade system is the best approach in the short and medium term. In addition to providing certainty in respect of emissions cap and trade offers is simply a means of offsetting unavoidable unequal burden associated with climate policy; It is simply to comply with other countries in climate policy; It avoids the current political opposition in the United States taxes; and it has a history of successful adoption in that country.

Allowance for CAP and trade system water, according to which the total amount of water withdrawn in a particular region may not exceed the equivalent number of allowances issued for the region, will provide such objectives by reducing the total quantity of water, or at least cost. All withdrawals from any surface or subterranean hydrological systems, Canada, Mexico and the United States on the continent of North America, with the exception of Puerto Rico and other foreign dependencies will be under the jurisdiction of the CAP and trade structures, which will take precedence over the existing policies in the field of water rights and markets if they can be shown to be compatible with the ...