AdvantagesThe above-stated features of cap and trade make it one of the most effective environmental policies for fight climate change to date. The following rationales will clearly form the cornerstones of the policy. 1) Encourage sustainable businesses and people to reduce their emissions. As companies have to pay additional costs for what they produce and emit, they must clearly make sustainability the main objective of their companies in order to reduce their emissions. Failure to do so will result in lower profits for their business, as they will have to pay the price for the additional carbon emitted. Additionally, it will damage their reputation among companies in the market with better carbon labeling. They will therefore have no choice but to act. They must make sustainability the main goal of their business. On the other hand, it would focus the thoughtful attention of every household and business on emissions reduction efforts.[6] (Repetto, Cap and trade is a better climate policy than a carbon tax, 2013) Every emitter, direct or indirect, would face higher prices for fossil energy and for high-consumption goods and services energy. Everyone would then be motivated to find ways to minimize these cost increases in the least expensive way. All the ingenuity and creativity that the economy and population can muster would be invested in this effort, not because of environmental commitment or citizenship, but because of economic self-interest. Although a large majority of Americans believe that greenhouse gases should be reduced, this has not been enough to motivate their actions on the scale required. Values ​​must be supported by the economic self-interest that is present in cap-and-trade policy. 2) Cost-effectiveness...... middle of document ...... stitution: http:/ /www.taxpolicycenter.org/taxtopics/quickfacts_cap-and-trade.cfm[9]Repetto, R. (2013, May). Cap-and-trade is a better climate policy than a carbon tax. United Nations Foundation.[10]Repetto, R. (2013). Cap-and-trade is a better climate policy than a carbon tax.[11]Examining existing and proposed emissions trading schemes. (2010, November). Retrieved May 18, 2014 from the International Energy Agency: http://www.iea.org/publications/freepublications/publication/ets_paper2010.pdf[12]The EU Emissions Trading System EU has failed: “It’s time to scrap the ETS”. (nd). Retrieved May 18, 2014 from Redd Monitor: http://www.redd-monitor.org/2013/04/16/the-eu-emissions-trading-scheme-has-failed-time-to-scrap-the- ets /[13]The History of Cap and Trade. (nd). Retrieved May 18, 2014 from the Alternative Fuel Show: http://www.altfuelsnow.com/carbon/cap-and-trade.shtml