Climate change economics and emissions-cutting policies are issues that closely associate with dealing with climate change. Several theoretical and empirical studies have shown essential advantages of market-oriented policies over command-and-control approaches. This is when it comes to controlling pollution. Climate change market-based strategies are also crucial in fighting climate change. Notably, there are specific market-oriented approaches that get often discussed by economists as a way to reduce greenhouse gas emissions. For example, there are Tradable Permits. Notably, the tradable permits program sets a specific target or cap on total emissions. Moreover, it allocates or auctions the necessary number of pollutions or allowances to polluters to meet that goal. There is a need for more focus on climate change economics and emissions-cutting policies by governments globally.
CLIMATE CHANGE MARKET-BASED STRATEGIES AND THEIR SIGNIFICANCE
Firstly, Climate change market-based strategies help fight climate change by putting an explicit price on carbon emissions. Also, it spurs businesses to find cost-effective ways to reduce those emissions. The costs of climate impacts do not reflect in the price of goods and services that emit greenhouse gases. Thus, putting a price on those emissions gives businesses an incentive to reduce them. By giving them the flexibility to choose the most economical way to reduce emissions, pricing encourages firms to innovate. Emissions cutting policies also help in regulating businesses that contribute to climate change. Notably, there are two best-known market-based strategies and the including cap and trade and a carbon tax. The research essay discusses climate change economics and emissions-cutting policies and their importance in fighting climate change.
climate change market-based strategies and their significance
CLIMATE CHANGE ECONOMICS IMPORTANT IN CUTTING EMISSIONS
The research article focuses on climate change economics significant in cutting emissions. Experts often debate the pros and cons of a carbon tax versus a cap-and-trade system in the United States. A carbon tax directly establishes a price on greenhouse gas emissions. Thus, companies get charged a dollar amount for every ton of emissions they produce. The emissions-cutting policies ensure that the companies pa up for contributing to climate change. However, a cap-and-trade program issues a set number of emissions “allowances” each year. These allowances can get auctioned to the highest bidder as well as traded on secondary markets, creating a carbon price. Climate change economics and emissions-cutting policies in various industries can help in regulating the impact of climate change.
climate change economics important in cutting emissions
