Cap and Dividend

A few days ago I wrote a rather short post about the EU ETS (Emissions Trading System). It was a praise of the general idea of cap and trade schemes (and the EU’s one as a good example), although I mentioned two challenges remaining: inclusion of all industrial sectors in the scheme and agreement on a global system of interlinked national cap and trade schemes. But there is one more adding proposal worth mentioning: the so called “cap and dividend”. Continue reading