Mahdi Rostami - Assistant Professor of Iranian oil industry university- Tehran Petroleum Faculty
nader dashti - Assistant Professor of Iranian oil industry university- Tehran Petroleum Faculty,
parviz gholami - Master student of Petroleum University of Technology (PUT) of Tehran

An emission trading system is a market-based approach and powerful policy instrument that used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. The presence of a trading system encourages operational excellence and provides an incentive and path for the deployment of new and existing technologies. The idea behind emissions trading is to meet environmental goals the lowest possible cost when compared to other environmental policies such as command-and-control or emissions taxes. Simple in concept, emissions trading can become complex in practice when considering all elements that must be in place. The most widely used trading mechanism is cap-and-trade where the overall emissions level is capped, and permits can be traded between emissions sources. Other form of trading, though not used as often as cap-and-trade, include offset or project trading. Early experience with emissions trading with offset or project-based trading, as well as the current experience with cap-and-trade, have resulted in significant cost savings to participants versus traditional command-and-control methods, but have not achieved all the possible cost savings available.

Emissions Trading, Cap-and-Trade, Emissions Reduction Credits