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What key difference distinguishes a carbon tax from a cap-and-trade carbon market, in terms of where money flows?

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1. What key difference distinguishes a carbon tax from a cap-and-trade carbon market, in terms of where money flows?

A carbon tax sends revenue to the State; a carbon market’s allowance trades stay within the private sector

A carbon tax is voluntary; a carbon market is always mandatory

A carbon market only applies to individuals, never companies

There is no real difference between the two mechanisms

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