Global Carbon Emissions Trading, a Good Idea?

"Global Carbon Emissions Trading, A Good Idea?"

BUSI620_D 05_201240

Liberty University

Parshley (2008) explains that emissions' trading is a result of the Kyoto Treaty which limited the amount of greenhouse gas to be released into the environment on an international basis. The theory behind the treaty was to reduce the amount of emissions and in time the amount of emissions allowed would be reduced and therefore the amount of greenhouse gas would be reduced. As a result of the limitation, a market was created where countries producing more emissions than they were allocated could then purchase credits from countries that were producing less emissions to allow for the overproduction. This has created a growing debate with regard to the effectiveness of the treaty. It is difficult to measure the amount of emissions produced by each nation and with the ability to trade for additional credits, there is little accountability or reason for the countries to work toward a solution to reduce emissions.

The Environmental Protection Agency (EPA) controls the amount of pollution that U.S. Industries are allowed in every geographical area in the United States. Global Carbon Emissions Trading is the only way a firm can open a business that causes pollution. "The Clean Air Act of 1990 helped establish a market for dumping rights" (Salvatore, 2012). The EPA issues the rights for a specific quantity of pollution into the market. The implementation of the Act has promoted the decrease in the number of summer ozone advisory days (Salvatore). The Act was a step taken in the right direction to control carbon monoxide and improve air quality. The EPA gives industries pollution choices through the use of emissions trading the companies can either trade for more carbon emissions or continue to use their older equipment or they can update their equipment to be more pollution free.

The EPA released a new rule that will allow more emissions trading and still provide health benefits (Cash, 2011). Jackson stated that you cannot exceed the emissions trading limit, but that this goal can be reached by increasing the amount of trading (Cash, 2011). They are requiring that six states in the Eastern part of the country reduce their carbon emissions (Cash, 2011). It has been discovered that emissions trading is one of the cheapest ways to cut down on air pollution (Scott, 2011). It is a very cost-effective way to control pollution (Scott, 2011). Many other countries either have or are planning emissions trading policies (Scott, 2011). With a carbon emission trading program, air pollution is being decreased and human health is being restored and the effort seems to being made worldwide.