This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

  •  Market failure and government intervention

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

Windfalls for heavy industry in EU carbon scheme are a moral hazard

  • Watch this video and then explain how the EU’s Emissions Trading System (ETS) operates

  • The ETS works on a ‘cap and trade’ principle. Using a demand and supply diagram, analyse how the cap and trade ETS can reduce emissions over time

  • Define moral hazard

  • Outline the reasons why ‘windfalls for heavy industry in EU carbon scheme are a moral hazard.’

Gavin Clarke, Emmanuel College

Get alerts on FT Schools when a new story is published

Copyright The Financial Times Limited 2022. All rights reserved.
Reuse this content (opens in new window) CommentsJump to comments section

Comments have not been enabled for this article.