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To What Extent Might the Current Approach to International Carbon Reduction be Described as Neo-liberal - Essay Example

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This essay evaluates current carbon reduction approaches and is divided into two sections. The other section is about strategies to combat carbon emission problems, as climate change has become one of the most challenging issues of recent decades…
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To What Extent Might the Current Approach to International Carbon Reduction be Described as Neo-liberal
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Download file to see previous pages The present carbon reduction approaches cannot be regarded as purely neo-liberalism since it mostly runs under market mechanisms, but is also impacted by political aspects. “Neo-liberal” is political-economic restructuring and often is called “structural adjustment programs” (Russ, 1999). Russ (1999) mentioned that “neo-liberalism has the features that include privatization, free-market, austerity, and comparative advantage.” Specific to carbon trading aspects, the features of a neo-liberal market should be as follows. First, the transaction of carbon and its related facilities, in addition to resources, should be owned by the private sector or multinational enterprises. Secondly, neo-liberalism means that the price of all factors that are related to carbon transactions should be set by the global market. These factors include market price, salaries of employments, shipping fees, etc. Last but not least, it includes the decreasing of public spending. This means that all services related to carbon trading shall be under market conditions and without government “interference.” The Kyoto Protocol was created for the purpose of carbon reduction emission obligations for industrial countries (Sander, 2010, P7). All the current methods are largely based on the Kyoto Protocol. Annex I countries have a goal to control carbon emissions by a certain amount at the end of the Kyoto Protocol. Thus, it gives these Annex I countries the opportunity to engage in the market of global carbon emissions. In this case, they are able to do transactions with flexible mechanisms through the Kyoto Protocol. These mechanisms include International Emissions Trading (IET), Clean Development Mechanism (CDM), and Joint Implementation (JL) (Sander,...
This essay declares that the present carbon reduction approaches cannot be regarded as purely neo-liberalism since it mostly runs under market mechanisms, but is also impacted by political aspects. “Neo-liberal” is political-economic restructuring and often is called “structural adjustment programs”. Russ mentioned that “neo-liberalism has the features that include privatization, free-market, austerity, and comparative advantage.”
This paper makes a conclusion that specific to carbon trading aspects, the features of a neo-liberal market should be as follows. First, the transaction of carbon and its related facilities, in addition to resources, should be owned by the private sector or multinational enterprises. Secondly, neo-liberalism means that the price of all factors that are related to carbon transactions should be set by the global market. These factors include market price, salaries of employments, shipping fees, etc. Last but not least, it includes the decreasing of public spending. This means that all services related to carbon trading shall be under market conditions and without government “interference.” Trading among these countries is worth over $100 billion each year. The free market, private sectors, and international trading play essential roles in the global emissions trading scheme. The market of carbon trading effectively helps reduce carbon levels. Meanwhile, there were not any targets set for developing countries. Fast growing economies in the developing world, such as China, India, Thailand, Egypt, and Iran, have increased their need for emissions trading. ...Download file to see next pagesRead More
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