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Emissions Trading

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What is emissions trading? Emissions trading is essentially a market-based cap-and-trade system where a cap on the limit of emissions is set and emitters buy the right to emit in the form of permits where each permit is usually equal to one tonne of CO2 equivalent. The overall cap and with it the overall number of tradable permits decreases every year by a fixed percentage to gradually drive up the cost of fossil fuels and incentivise emitters to utilise cleaner technology to emit less. Allowing permits to be traded allows flexibility in terms of how and where pollution is reduced and allows the market to put a price on pollution; the price per permit is the cost of emitting one tonne of CO2-eq.  The figure below depicts the working principle. Companies with high abatement costs deem it more economical to purchase permits from companies - typically those with low abatement costs - than to actually procure new machines. Principle of cap and trade Who is subject to an e
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Electric Cars

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What is an electric car? Let's start with the basics. An electric car is an automobile that is propelled by one or more electric motors using energy stored in rechargeable batteries. How does an electric car differ from a gasoline car, you might ask. Appearance-wise, electric cars look practically identical to their gasoline counterparts with the exception that there is no exhaust pipe for the simple reason that there is no exhaust. Instead of a gas tank, you’ll see an electric motor which supplies the automobile with the energy it needs to move. Also present is a controller which regulated the amount of power received so that the motor does not burn out. The breaks, air conditioning, and airbags function in the exact same way as in a gasoline-powered car. Current scenario Interestingly enough, electric cars first appeared on the scene in the mid 19th century and the vehicular land speed record was held by an electric car until around the beginning of the 20th century. How
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