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Discussion

The Perform Achieve and Trade scheme works by

  • A.publishing a league table of consumers without any obligation
  • B.setting specific energy consumption targets and allowing the surplus to be traded
  • C.taxing consumption above a stated threshold and rebating the proceeds afterwards
  • D.subsidising the purchase of efficient equipment directly

Answer: B

Each designated consumer receives a target expressed as specific energy consumption; those who beat it earn certificates and those who miss it must buy them or pay a penalty. Making the surplus tradeable is what gives the scheme its market character.

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