Analytical assignment-4

Why is The Climate Change Problem So Hard to Solve ?

Case Summary

The given case explains that represents from 192 countries travelled to Copenhagen, the
capital city of Denmark which was referred to in late 2009, as a hope to build upon the
Kyoto Conference (an international conference where an agreement took place that
aimed to reduce carbon dioxide (CO2) emissions and the presence of greenhouse
gases (GHG) in the atmosphere). The motive was to reach agreement on steps to
reduce carbon emmissions, which were believed to contribute to the global warming.
There has been widespread agreement that human activity contributes global warming
resulting flooding, desentification, etc. In Copenhagen, there were participation from
developed and developing countries. It is said in the case, that Kyoto set a precedent
that only developed countries would be expected to pay that cost of reducing
emmissions and the developing countries would either be exempt, or would expect to
receive subsidies or technology transfer from developed countries to reduce
emmissions.

Here another controversy is introduced whether the country belonging developed and
developing countries receive credit for offsets or not. The developing countries want the
developed countries to pay them as carbon credits as they claim that they have been
slowing their own development. A question has arose that is the world's largest green-
house gas emmitter, China still a developing country as it was classified as developing
at Kyoto.

The individual country should be responsible to pay for reducing emmissions. But this
may create the other people of the country, opposition not accepting the arguement of
human activities being a cause of global warming . The case also explains that the
global agreement to reduce the emmissions will benefit everyone, whether or not an
individual has borne the expense of reducing emmissions. Climate change has been in
existence since a very long time and it has been one of the most difficult problem that
humans have ever faced. It has still been an unsolved problem. The case says that this
climate change being an unsolved problem in long run may result the people top adapt
the climate change and prefering the best in the available climatic change.

The case rather than showing the solution for climate change provides the attempts that
had been taken for the solution of climatic change and at the end, the possible situation
that the people may have to face in the future because of excessive climate change.
Analyze The Issue
1. Give an example of an equity( fairness ) issue that arises in working toward a global
agreement to limit greenhouse gas emmissions.

Ans:
Equity issue or the fairness issue is concept where economic equality is disturbed. More
specifically it refers to the equal chances regardless of identity, works, income to all the
citizen. On a global basis, it is the equality to all the countries, the developed and the
developing. As explained in the case, the fairness can be practiceable as the Kyoto set a
precedent that only the developed countries would be expected to pay the cost of
reducing emmissions and the developing countries, which slow their own development
by growing new forests would either be exempt or receive subsidies or technology
transfer from developed countries to reduce emmissions be extempt or be provided with
subsidies or technology transfer form developed countries to reduce emissions.

In the global agreement also we can see the equity issue which has arised and may arise
if same agreement will be in practice. The example can be one of the country given in
the case i.e. China. In the global agreement to limit greenhouse gas, there is not even
agreement over which countries are still developing, which means that there exist no
agreement of the contries to be classified as developed or developing. This resulted
China to be classified as developing at Kyoto despite being the world's largest
greenhouse emitter after growing its GDP. This kind of activity results developed
countries to be benifited from industralization without having to pay for their
emmissions. And the developed countries that want developed countries to pay as
credits, remain unpaid.

Due to this reason, the developed countries like China who claim themselves as
developing will be more industrailized and developed without having to pay for their
emmissions and the other developing country who slow their development by growing
new forests, cutting less trees, won't result more industrialization and development.
Here in this situation there will not be economic equality or equity between the
developed and the developing countries. Therefore, this kind of equity issue may arise
because of global agreement.

2. Give an example of an efficiency ( market failure ) issue that aruses in working

toward a global agreement to limit greenhouse gas emissions.

Ans:
Market failure is the economic situation defined by an inefficient distribution of goods
and services in the market. In an industrializing market, there is efficiency in demand
and supply of a particular product that may be a cause of emitting greenhouse gases.
Because of the global agreement to limit greenhouse gas emmissions, there can be entry
or more use of substitutes of the product causing greenhouse gas to emit.

For example: to solve the climate change , the global agreement to limit greenhouse gas
emissions, it may be decided to use the substitutes of material for production that cause
emission of gas causing climate change to avoid more pollution. Let in a efficient fuel
market, where the firms of different industry that use fuels for producing their product
decided to focus on reducing the emission of harmful gases and use electricity as a
substitute to fuel. The consequent result of more firms having the same thought will be
the demand for electricity in the fuel market to increase and demand for fuel decrease
due to which the market equilibrium of fuel market is disturbed.

Therefore, efficiency issues may also result in working toward a global agreement to
limit greenhouse gas.

3. Many countries argue that they should get credit for offsets, such as planting trees.
Explain whether the case for offsets is based on efficiency or equity arguements.

Ans:
The case provides a controversy over whether countries, developed and developing,
should receive credit for offsets. Offsets means reduction in an existing pollution source
to counteract pollution from new source. For an example, there is Brazil who wants
credits for slowing the rate at which it is cutting down its rainforests. Many other
developing countries want develloped countries to pay them as they claim they are
slowing their own development by growing new forests or slowing the conversion of
existing forest to agricultural areas.

This case for offsets is based on equity arguements. Equity meaning all the economy to
be equally developed, the developed countries and the developing ones. Developed
countries who are increasing industrailization are the reason of more emission of
greenhouse gas and are more responsible for global warming, climate change. On the
other hand the developing countries who claim to have slowed their own development
have more contribution on reducing emissions. Trees store carbon and contribute in
reducing the amount of carbon in the atmosphere. When the developed countries
provide subsidies or technology transfer to the developing countries to reduce
emissions, both the countries, developed and developing will have a fair condition.

Thus, the case for offsets is based on equity arguements as the credit giving for offsets
to developing countries by the developed ones will be fair for both.