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Argument: Emissions trading has govt not markets set cap

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Parent debate

Supporting quotations

"Is carbon trading a market mechanism?": "There appears to be a misconception among many 'lay economists' that carbon trading is a 'market mechanism' while carbon taxes are not. However, government control of the quantity of an item being sold is no more of a market based mechanism than government control of the price. Where it counts, carbon taxes make far better use of market forces than carbon trading schemes."

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