California’s introduction last month of a cap-and-trade system to limit and reduce the emissions of carbon dioxide and other pollutants may mark a new phase in the American climate change debate. The decision by the California Air Resources Board to put a price on heat-trapping pollution and allow polluting industries to trade carbon credits adds to California’s already substantial number of climate changes related laws and regulations.
The key question is, of course, if it will lead to an increase in innovation and production of environmentally friendly technologies. Especially in light of the recent debate over governmental subsidies for the now bankrupt solar panel maker Solyndra in the US and falling public subsidies for solar power in Germany and Spain.
For an overview of California’s cap and trade system see the below article: