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Cap and Trade: How It Would Work

Industries would be allowed to emit a certain amount of CO2 annually. Plants that emitted less than the cap would be able to sell their leftover allowances to companies that exceed caps. The government would gain revenue by auctioning allowances permitting companies to discharge a set amount of greenhouse gases.

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Push to Reduce Greenhouse Gases Would Put a Price on Emitting Pollution
Article | President Obama's endorsement of climate legislation to clamp down on greenhouse gases has set off a lobbying rush in Congress and made the air thick with rival proposals.

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