Climate policy, as it has been understood and practised by many governments of the world under the Kyoto Protocol approach, has failed to produce any discernable real world reductions in emissions of greenhouse gases in 15 years.
Interests in obtaining carbon offsets in host countries for Clean Development Mechanism projects may serve as an obstacle to implementing more stringent general environmental policies in the same countries. A relatively lax environmental policy, whereby carbon emissions remain high, can be advantageous for such countries as it leaves them with a higher than otherwise
This recent study analyses the economic and political consequences of introducing a tax on the carbon content of imported goods at EU borders and whether such a tax would be compatible with WTO rules.
P>The environmentalists are doing genuinely good work to promote more favourable situation for the earth to survive the rampaging attack on ecology. But in the process one has to look for the correct method. The environmentalists advocate eco-tax and eco-subsidy to cope with pollution. I am writing this treatise to examine this proposition.
The social cost of carbon (SCC), defined as the estimated price of the damages caused by each additional ton of carbon dioxide (CO2) released into the atmosphere, is the volume dial on government regulations affecting greenhouse gases: The higher the SCC is set, the more stringent the regulatory standards.
