Most have accepted the fact that the Kyoto Protocol was not successful – none of the Annex I

Most have accepted the fact that the Kyoto Protocol was not successful – none of the Annex I

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Most have accepted the fact that the Kyoto Protocol was not successful – none of the Annex I states met their goals by the deadline. Now, many argue that cap-and-trade policies will be more effective. Rather than calling for an external authority to regulate states (which introduces the possibility of cheating and free riding) proponents of cap and trade argue that a market based system will work best, because it will incentive developing tech to reduce emissions. With cap and trade, an emissions credit market is created. The state either sells or gives out credits and then sets a cap on the permissible level of emission for each firm. States that quickly adapt and meet this cap (or go below it) can sell their excess credits on the market and make a profit – those that do not and exceed the cap, will have to buy credits. Over time, the idea is to make it too costly for a firm not to meet the cap. This system has worked before with phasing out leaded gasoline and reducing sulfur dioxide
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Unformatted text preview: emissions in the US. The issue for many, however, is that the government needs to intervene in the market quite a bit. Ideally, the government needs to insure that firms are actually meeting the cap to the extent that some critics will argue that you can get rid of the trade part altogether and just set a cap and punish firms that dont comply (this, however, is what Kyoto tried to do, which wasnt particularly successful). Also, it would most likely be difficult to create this at an international level where it has worked, it has worked at the domestic level. An international cap and trade system was on the table at the Copenhagen meeting in 2009 this was supposed to replace the Kyoto Accords, which expire in 2012. No broad agreement was met, and piecemeal solutions were put in place in Cancun in 2010 things like corporations compensating developing countries that curb deforestation and aid given to the developing world....
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This note was uploaded on 11/27/2011 for the course POLISCI 1003 taught by Professor Olson during the Fall '11 term at GWU.

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