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CONTENTS
BackgroundInformation
LowCarbonEconomy inUS
LowCarbonEconomy inUK
LowCarbonEconomy inChina
Conclusion
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KYOTOProtocol
Morethan140countriesacrosstheworld,markedoneofthefirstandthelargestinternationaltreatiesininresponsetoincreasingglobalwarming.
ThistreatiesweresignedinKyoto,JAPAN.
AProtocoltotheUnitedNationsFrameworkConventiononClimateChange(UNFCCC),aimedatfightingglobalwarming.
Additionalmeansofmeetingtargetsthroughthree
marketbasedmechanism:
-Emissionstrading–knownas“thecarbonmarket”
-Jointimplementations(JI)and
-CleanDevelopmentMechanism(CDM)
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KYOTOProtocol
PartiestoUNFCCCareclassifiedas:
-Annex1countries–industrializedcountriesand
economiesintransition
-Annex2countries–developedcountrieswhichpayforcosts
fordevelopingcountries
-DevelopingcountrieslikeIndia
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KYOTOProtocol
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KYOTOProtocol
Themaingoal,amongothers,%below1990levels.
AmericanleadershavecontinuallystatedthattheKyotoProtocolcouldharmtheAmericaneconomy,costAmericanjobs,anddecreaseproductivitybyuptotenpercentby2010,hencetheyrefusetoratifythetreaty.
Bynotparticipationinthetreaty,theUSisdenyingresponsibilityforaproblemtheyhelpedtocreate,weakeningtheirtiestoothercountriesthathaveratifiedthetreaty,andultimatelycausingitselfmoreharmthangood.
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CARBONTRADING
Carbonemissiontradingisaformofemissionstradingthatspecificallytargetscarbondioxideanditcurrentlyconstitutesthebulkofemissionstrading.
ThisformofpermittradingisacommonmethodcountriesutilizeinordertomeettheirobligationsspecifiedbytheKyotoProtocol;namelythereductionofcarbonemissionsinanattempttoreduceormitigatefutureclimatechange.
Undercarbontrading,acountryhavingmoreemissionsofcarbon,isabletopurchasetherighttoemitmoreandthecountryhavinglessemissionstradestherighttoemitcarbontoothercountries.
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CARBONTRADING
CarbontradeinEconomy
-Emissionstradingworksbysettingaquantitivelimitonthe
‘economic’basisfor
emissionstradingislinkedtotheconceptofpropertyrights.
Therighttousethegood
Therighttoearnincomefromthegood
Therighttotransferthegoodtoothers
Therighttoenforcementofpropertyrights
Propertyrightsarethetheoreticalsocially-enforcedconstructsineconomicsfordetermininghowaresourceoreconomicgoodisusedandowned.
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CARBONTRADING
CostandValuation
-Theeconomicproblemwithclimatechangeisthattheemittersofgreenhousegases(GHGs),forexample,thecostoffuelbeingused,butthereareothercoststhatarenotnecessarilyincludedinthepriceofagoodorservice.
-Theseothercostsarecalled‘externalcosts’.‘welfare’,GHGemissionsaffectthewelfareofpeoplelivinginthefuture,aswellasaffectingthenaturalenvironment.
-,theemittersfacesthefullsocialcostsoftheiractions.
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USResponse
TheUnitedStatesofAmerica,althoughasignatorytotheprotocol,hasneitherratifiednorwithdrawnfromtheprotocol.
President,,notbecausehedoesnotsupportthegeneralidea,butbecauseofthestrainhebelievesthetreatywouldputontheeconomy.
ThepositionBushhastakenonclimatechangehasshiftedwithagradualincreasingacceptancethatglobalwarmingisaproblem,,apactthatallowsthosecountriestosettheirgoalsforreducingGHGsemissionsindividually,
butwithnoenforcementmechanism.
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