Tue. Dec 7th, 2021


This article, selected by a teacher with suggested questions, is part of the Financial Times Free School Access Program. Details / registration here.

Specification:

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

Companions for heavy industries in the EU carbon scheme are a moral hazard

  • 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



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