What is the primary difference between a carbon tax and a cap-and-trade system?
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A
A carbon tax sets a fixed price on emissions while cap-and-trade sets a fixed quantity limit
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B
Cap-and-trade raises more government revenue than a carbon tax
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C
A carbon tax applies only to electricity generation while cap-and-trade covers all sectors
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D
Cap-and-trade is administered federally while carbon taxes are always state-level