Cap and Trade Definition: It's All Easier To Understand Than You Think

In practice a cap and trade program for carbon emissions is a pretty complex thing, no doubt about it. It also can seem like a pretty wonky concept for the average person to pay much attention to; which is perhaps why if fairly recent public polls are anything to go on a great many people in the US haven't the foggiest idea of what all the fuss is about.

With that in mind, and in light of President Obama's speech from the Oval Office last night, here's the most simple cap and trade definition I can give: