What does is mean that "emissions trading has propertitized pollution"?
Express versus Implied Contracts. Suppose that a local businessperson, McDougal, is a good friend of
Krunch, the owner of a local candy store. Every day on his lunch hour McDougal goes into Krunch¡¦s
candy store and spends about five minutes looking at the candy. After examining Krunch¡¦s candy and
talking with Krunch, McDougal usually buys one or two candy bars. One afternoon, McDougal goes into
Krunch¡¦s candy shop, looks at the candy, and picks up a $1 candy bar. Seeing that Krunch is very busy,
he catches Krunch¡¦s eye, waves the candy bar at Krunch without saying a word, and walks out.
Is there a contract? If so, classify it within the categories listed in this chapter.
In responding to the question be sure to:
„h Discuss the elements of an implied contract.
„h Discuss silence as acceptance.
Implied Contract
To understand what it means that "emissions trading has propertitized pollution," let's break down the key concepts involved.
1. Emissions Trading: Emissions trading, also known as "cap and trade," is a market-based approach to controlling pollution. It involves setting a limit or "cap" on the total amount of pollution that can be emitted by a group of polluters (e.g., companies, industries, or countries) within a given time period. These polluters are then allocated a certain number of permits or allowances that allow them to emit a specific quantity of pollution.
2. Propertitized Pollution: "Propertitize" means to convert something into property or to treat it as a tradable asset, similar to owning and transferring property rights. In the context of emissions trading, the concept of propertitized pollution refers to the transformation of pollution into a commoditized asset that can be bought, sold, and traded in the emissions market.
Now, putting the two concepts together, when we say that "emissions trading has propertitized pollution," it means that the system of emissions trading has turned pollution into a tradeable commodity. By allocating permits or allowances, which give the right to emit a certain amount of pollution, the system assigns property rights to polluters and turns pollution into a marketable asset.
Instead of the traditional regulatory approach where pollution is simply regulated and restricted by rules and fines, emissions trading treats pollution as a valuable asset that can be controlled and traded. This approach allows for economic incentives and market forces to drive reductions in pollution by enabling those who can reduce emissions more efficiently to do so and sell their excess permits to those who face higher costs in reducing emissions.
In summary, "emissions trading has propertitized pollution" means that it has transformed pollution into a tradeable asset, allowing for market-based mechanisms to control and reduce emissions.