Emissions trading is a governmental approach used to control pollution by providing incentives for decreasing the emission of pollutants. Emissions trading as means of reducing the air pollution may look like having a positive outcome in the long run, but it may not. For those companies who do not use all of the emissions permits there are other companies that buy the permits from them. These companies that use up all the permits, and then buy more create monopolies throughout corporations. This also causes corporations who are polluting the air just pollute the air even more because they are able to buy more emission permits. So, essentially emission trading could make an unfair trading amongst companies.
I would favor the command-and-control because it sets more regulation on what emission tickets are going where. It would be stricter on the emissions trading which would eliminate various problems. It could help control the monopolies that are formed by emission trading, and help companies become more environmentally friendly. Command-and-control would also provide incentives for those who do not use all their emission. The one issue with a command-and-control regulation would be that the government would have more control in the issue of emissions.
Some advantages of the command-and-control would be a more egalitarian emission permits. The government would control the emission permits instead of being able to trade and sell the permits among corporations. However, this could also be seen as a disadvantage. Some people in the United States could see the command-and-control as the government having too much power. The market-based permit trading also has advantages and disadvantages. The market-based trade sets a less regulated trade among corporations on emission trading. However, this creates monopolies, and lets some corporations have more emissions than others.
