Question

1. Suppose that Climate Change is caused the emissions of carbon dioxide and methane gases. Suppose further that the United Nations proposes a policy to combat these emissions to reduce the impact of Climate Change. This policy proposes that each country in the world reduces their carbon dioxide and methane emissions by 50% over the next two years (i.e., each country should cut their emissions by half). The United Nations suggests that countries could tax polluters to get them to reduce their emissions.

In class we discussed seven (7) criteria upon which environmental policy are evaluated. Carefully discuss this proposed policy from the perspective of:

a. Efficiency

b. Cost-effectiveness

c. Fairness

d. Enforceability

e. Flexibility

f. Incentives for technological innovation

g. Other moral considerations

For this question, I want 7 answers (one for each of a, b, c, d, e, f, and g, respectively). A couple of sentences under each category should be sufficient.

Answer 1

Policy is to cut pollution by 50%.Polluters will pay and this will internalize the externality and as polluters have economic costs associated, they will adopt trchnologies to reduce it and also to find better and environment friendly products.

Criteria upon which environmental policy are evaluated :

a. Efficiency: It is a point at which costs and damages are equal. This policy does seen to give efficient implementation but point b should be considered.

b. Cost-effectiveness: Costs incurred for pollution control should have economic viability. If costs are tooo high polluters may not care. In this case, it should be assessed on a case to case basis as it is not possible for all polluters to bear costs initially.

c. Fairness: Policy should consider all countries which are at different stages of development and hence what is applicable for USA may not be applicable for India. Hence targets should be fair for all countries and should not be same.

d. Enforceability: This policy does not have enforcing mechanism except conferences and hence first proper body to ensure implementation should be considered.

e. Flexibility: There should be flexibility in policy and should not be same throughout and should be changed as per the changing impacts.

f. Incentives for technological innovation: If any company shows latest technology implemented then again it will be given relief. May be in the form of additional carbon credits.

g. Other moral considerations: Is having same policy effective for all. Subsidies for some producers to implement pollution control mechanism may be better rather than charging them. Hence a developing country may not consider ethical to close a plant that generates jobs.

Hence, having same policy for all should not be implemented but dfferentiated responsibilty is to be given.