Of these three major options, economists prefer the use of cap and trade or emissions trading system. On the other hand, governments prefer regulation and subsidies to control gas emissions. Note that regulations through taxes are easier for governments to implement and monitor. Giving subsidies to organizations and establishments that use renewable energies is more appealing. Following the recent global economic debacle where many governments use taxpayers’ money to stimulate the economy, giving incentives and subsidies to green technology has become easier.
Although use of taxes and subsidies may work on a short term basis, it may not be the most sustainable means to lower gas emissions. We have to understand that the resources of the government are finite so giving subsidy may not be a appealing in the long run. Besides, government regulations interfere in the natural flow of the market. If the market is working well, then there is minimal need for government interventions. Thus, instead of using government regulations and subsidies, it would be better to use the cap and trade system and let the market forces go its natural course.
The cap and trade system has been used by some countries in Europe. This system was also adopted by the Kyoto Convention on Climate Change. Note that the Kyoto Protocol was signed by a number of developed nations in 1997. The protocol which took effect last 2005 binds these nations to a cap-and-trade-system to reduce emission of 6 major greenhouse gases (see UNFCCC website http://unfccc.int/kyoto_protocol/items/2830.php).
As provided for under the treaty, within the compliance period from 2008 to 2012, countries that emit greenhouse gases below their limit are entitled to sell their emissions credits to countries that exceeded their allowable emission. The trading scheme also allows developed countries to earn tradable emission credits by sponsoring carbon projects to reduce the greenhouse gas emissions of
This phenomenon has many serious implications not only on the environment but also in the economies of nations. Note that as climate changes, production, especially in terms of agricultural products, will…
This paper shall discuss the thesis that the socio-economic benefits of using renewable energy resources should be considered a sufficient ground in motivating the U.S. government to financially support the development of renewable energy resources such as solar, wind, water, and geothermal energy throughout the United States.
This research provides background on climate change and the benefits and drawback of Cap and Trade with respect to California. Moreover, it also discusses the importance of Cap and Trade implementation and factors which led California to employ this particular regulation program. On the other hand, the paper explores the impact of Cap and Trade on the utility rate formula.
Australia has more to lose from climate change than any other developed country as it is a hot and dry continent. That is why the Government has adopted a plan for a clean energy future in the country, that will reduce pollution and drive green investments. Certain price tag was placed on every ton of carbon pollution released into the atmosphere.
Since global warming has a potential impact of increasing the normal temperature it produces a lot of harmful effects for the people living on the earth. In order to restrict the emission of such gases two different forms of providing a deterrent feature is being discussed by the economists and other expert environmentalists; one is the Carbon tax and the other Emission trading.
Analysis of USA’s Climate Change policies
"Anthropogenic climate change refers to the production of greenhouse gases emitted by human activity".
"Green house gas blankets the Earth and keeps it about 33 degrees Celsius warmer than it would be without these gases in the atmosphere" and this is what we call the "greenhouse effect" (Nick Hopwood).
The author states that the Cap and Trade has been enforced by most of the nations on industries so as to check and bring under control the level of harmful atmospheric pollutants like carbon dioxide, which results in accumulation of greenhouse gases. Most of the nations have adopted this Cap and Trade method, for controlling the pollution.
Such include use of renewable sources of energy such as solar, wind and wave energy. The United States government has come up with rules and regulations aimed regulating the amount of carbon dioxide emissions into the atmosphere. The United States
Secondly, it was believed that developed countries should take deliberate actions to mitigate on the increase of the harmful effects of greenhouse-effects. Lastly, the developed countries should support
Initially proposed in 2001 the Emissions Trading System of the EU (EU ETS) was officially established and launched in 2005 as the first cap-&-trade system for the emissions of carbon dioxide in the world with reference to the Kyoto Protocol
market encompasses: contracts for difference (CFD) aimed at luring companies to invest in the low carbon energy generation; capacity market to securitize the supply of electricity aimed at reducing the demand for electricity; and Conflict of Interest and Contingency Arrangement
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