cap-and-trade

adjective

Definition of cap-and-trade 

: relating to or being a system that caps the amount of carbon emissions a given company may produce but allows it to buy rights to produce additional emissions from a company that does not use the equivalent amount of its own allowance

First Known Use of cap-and-trade

1995, in the meaning defined above

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The first known use of cap-and-trade was in 1995

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