Question: Explain the following statement: A Cap-and-Trade framework requires that the total pollution level is known, that the allowed level of pollution is determined, that the

Explain the following statement: "A Cap-and-Trade framework requires that the total pollution level is known, that the allowed level of pollution is determined, that the cap is declared, and that the total number of pollution permits is announced. All the rest will automatically fall into place: Polluters will start to trade and a price for the pollution permits will be set in the market." Are all necessary steps and/or information are included in that statement? Explain your answer.

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