Question

Offset trading involves emitters paying others to reduce emissions to compensate for their own increase in emissions.

a.True

b.False

Offset trading is

a.often voluntary

b.vulnerable to the problem of validating that the emissions reduction actually occur

c.not uncommon as a means of carbon reduction in international markets

d.all of the above

Emission rate trading reduces costs of emission reduction by allowing firms with higher abatement costs to buy reduction credits from firms with lower abatement costs.

a.True

b.False

One form of greenwashing is selling carbon offsets as an intermediary without actually substantiating that real carbon reductions have occurred.

a.True

b.False

Globalization involves

a.increases in pollution

b.disconnected financial markets

c.increasing trade among nations

d.restrictions on movement of people

It is often the lack of effective governance and institutions for environmental protection that leads to environmental costs from trade in developing countries, rather than merely that a country trades more.

a.True

b.False

Answer 1

Answer to the question:

1. Offset trading involves emitters paying others to reduce emission to compensate for their own increase in emissions.

-a. True. Because: by buying offsets individuals, government, firms and companies try to mitigate their own personal emission. Basically offset involves reduction in greenhouse gases in order to compensate the emission of greenhouse gases in some other places.

2. Offset trading is

-d. All of the above. Because: offset trading is often voluntary but widely practiced in various nations as a means of emission reducing technique. But a major problem is associated with this offset trading. There does not exist any apex authority to ensure the actual reduction in emission of greenhouse gases.

3. Emission rate trading reduces costs of emission reduction by allowing firms with higher abatement costs to buy reduction credits from firms with lower abatements costs.

-a. True. Because: when a firm emits less than the permitted limit, it can sell it rest of the carbon credits to other firms which are unable to reduce their respective emissions.

4. One form of greenwashing is selling carbon offsets as an intermediary without actually substantiating that real carbon reductions have occurred.

-a. True. Greenwashing involves the process of providing false information about how the products of a firm are environment friendly. As the offset trading is associated with the vulnerability of validating that the emission reductions actually occur; therefore it can essentially be a form of greenwashing.

5. Globalisation involves

-c. Increasing trade among nations. Because: globalisation integrates markets and governments among many countries by opening up the national boundary of a nation for other nations.

6. It is often the lack of effective governance and bad institutions for environmental protection that leads to environmental costs from trade in developing countries, rather than merely that a country trades more.

-a. True. Because: the trade itself cannot create pollution or environmental costs if the environmental regulations are strongly enforced in a country. But often it is seen that many countries try to attract trade or international business at the cost of their environmental laws. With weaker environmental laws, the multinational firms find easy to expand their business but at the same time it creates environmental costs for the home country.

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