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  • Government Intervention in Markets; other methods of intervention: trade pollution permits

Click to read the article below and then answer the questions:

Cost of polluting in EU soars as carbon price hits record €50

  • Define Tradeable Pollution Permits

  • Describe how the rising cost of pollution can impact on exports in some national sectors like steel

  • Explain what is meant by the “cap and trade system” for EU ETS

  • ‘Fatih Birol, head of the International Energy Agency, on Tuesday described the [carbon] price rise as “excellent”, arguing that higher carbon prices were necessary for a rapid transition towards cleaner fuels’. Evaluate the impact of a rapid conversion to cleaner fuels for traditional high polluting industries like cement.

Luca Scappini, Stepney Green Maths, Computing and Science College

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