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Q: Since all exchanges in a market economy are voluntary how do we know that the exchange will probably benefit all participants?
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Carbon credits are sold through exchanges, just like stock or commodities. The exchanges require those selling to be registered. How registration is done depends on the nature of the business and where you are located. If you are in the United States, carbon credits ultimately are sold through the Chicago Climate Exchange (see link below). If you are a farmer, you can sell through the National Farmers Union, which simplifies things a good deal (see link to their carbon credit program below). The European equivalent of the Chicago Climate Exchange is the European Climate Exchange. Registering is different for each program, of course, and each is probably too complicated to be detailed here.


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Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading floor. You've probably seen pictures of a trading floor, in which traders are wildly throwing their arms up, waving, yelling, and signaling to each other. The other type of exchange is virtual, composed of a network of computers where trades are made electronically.


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