Part I: Questions related to Forbes article "Cap and Trade Curbed Acid Rain: 7 Reasons Why It Can Do The Same For Climate Change" by Justin Gerdes (available as a PDF in your Sakai under Resources Homework)

Examine the questions below and then read the article. After reading provide an answer to these questions*:

1. What market failure can be identified in the article?

1. What is the policy used to correct this market failure?
2. Under what umbrella air quality legislation does the policy discuss in the article fall?
3. How does the policy described in the article work? (a few sentence are expected here - do not quote or copy from text, interpret it and describe)
4. Was this policy effective? How so? (Hint:identify the results/achievements)
5. Did the policy incentivize innovation? Describe how. (a few sentences)
6. Was the policy equitable?
7. In what other market failure situations can this policy be used successfully?
8. What are some issues with this proposed policy?