Revolutionizing Tax Policy: Tradable Credits Boost Efficiency and Equity
Tradable tax credits can be a better way for the government to encourage certain behaviors than direct subsidies or tax breaks. They work like money that can be traded, making them more efficient and creating extra benefits. For example, they can help make buildings more energy efficient. Tradable tax credits can also bring different groups together to support a policy and make it fairer for everyone. Overall, they are a useful tool for the government to use in certain situations.