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Click to read the article below and then answer the questions:
Look this video and then explain how the EU Emissions Trading Scheme (ETS) works
The ETS works on a ‘cap and trade’ principle. Using a supply and demand diagram, analyze how the cap and trade can reduce ETS emissions over time
Define moral danger
Outline the reasons why ‘windfalls for heavy industries in the EU carbon scheme are a moral hazard.’
Gavin Clarke, Emmanuel College