Lesson Overview

In this activity, students acting as owners of companies emitting proscribed substances engage in a market for tradable pollution credits. So-called “cap-and-trade” programs have been used successfully to meet pollution standards while incorporating incentives to find least-cost solutions.

Video Demonstration

Materials:

• $1 bills: 1 per student (or use candy, bonus points, homework passes, etc, in place of cash)
• $5 bills: 5 (or use candy, bonus points, homework passes, etc, in place of cash)
• Calculators: 1 per company (9 per class of 30)
• Found in Screen Share Visuals
  • “The Problem”
  • “Potential Solutions and Costs”
  • “The AQCC Plan”
  • “The Challenge”
  • “A Better Solution”
• Found in Download & Print
  • Role cards A, B, and C: 1 per student, 1/3 As, 1/3 Bs, 1/3 Cs
    • Use a different colored paper for each company’s role cards
  • Checks for purchasing certificates: 10-15 (varies)
  • Accounting sheets: 1 per firm – 3 As, 3 Bs, and 3 Cs for a class of 30 students. (Copy on same colored paper as firms’ role cards