Question

Consider two options for controlling global carbon emissions.

Option A. For every year t, every country must meet the same target for emissions per capita, based on their population in 2010. That is the restriction is Ei(t)/Pi ≤ B, where Ei(t) is total carbon emissions from country i in the year t, Pi is their 2010 population, and B is some number that is the same for all countries.

Option B. Each year t, every country must meet the same target for emissions per unit of GDP, based on their GDP (converted to a common currency) in that year. That is the restriction is Ei(t)/GDPi(t) ≤ K, where Ei(t) is total carbon emissions from country i in the year t, GDPi(t) is that country's current GDP in year t, and K is some number that is the same for all countries.

Discuss the strengths and weaknesses of these policies. Which policy do you think is better and why?

Answer 1

Option A

Strength

In this method of calculation, the population of certain year has been taken into consideration, this would make people aware about their limit under which they have to operate in order to attain the per capita emission cap that is being restricted upon them.

Weakness

Here, the base year that is considered for the calculation is 2010 but the population growth rate always remain positive for all the countries irrespective of whether they are developed or developing or under developed. If the value of “Ei(t)” increases then it would be difficult for the nation to achieve the per capita emission because after passing of time the value of “t” would automatically rise. In this method, the countries those have more population they will be restricted to extend their economic activities because of the restriction imposed on per capita emission, while the countries have less number of population they would be comparatively on the advantages side because of their per capita emission cap is higher than the former.

Option-B

Strength

As it has considered current or nominal GDP while putting the per capita emission restriction, this method is much more efficient than the first method. The current GDP gives a more clarity about the present economic scenario-taking place in the current period than taking the GDP of any other particular year.

Weakness

This method will not be that much efficient because “K” is same for all countries, which will affect adversely to those countries’s GDP is lower than the other country’s GDP. Those country’s GDP is less they should not be kept under the bracket as same as for those country’s GDP are more. This implies a sort of prevalence of inequality in emission of per capita carbon.

Which policy do you think is better and why?

Between the above two policy, the Option-B would work much more efficiently than the option-A. As Option-B taken the GDP into account, this will positively affect to those countries GDP are lesser than the other countries. This would lead to a balanced growth of GDP among the countries, as this method would restrict to extend economic activities of the developed countries whose GDP are more. Therefore, this would bring a balanced growth among the countries.