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American Economic Journal: Microeconomics 2017, 9(4): 171202 https://doi.org/10.1257/mic.20160218Cap and Escape in Trade Agreements By Mostafa Beshear and Eric W. Bond* We propose a model of flexible
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Cap and escape in refers to a specific compliance reporting method used to track and manage emission allowances under environmental regulations.
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Entities that exceed certain emissions thresholds or that are subject to cap-and-trade regulations are required to file cap and escape in.
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Information that must be reported includes total emissions for the reporting period, the source of emissions, and details about any allowances held or purchased.
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