Economics class: Windfalls for heavy industry in EU carbon scheme are a moral hazard
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
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
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