This essay talks that the environmental pollution and gradual depletion of the natural resources in the global economy could be attributed to one of the major factors, namely inappropriate pricing of goods and services. The market based instruments influences the cost of production…
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As the report stresses the various ways in which market based instruments prevents the sources of environmental pollution and health degradation includes the following. Due to the implementation of the market based instruments, the producers have shown more responsible behaviour towards switching over to the eco-friendly systems of production, efficient use of natural resources and reduction of wastes. The consumers have also received more transparency on the values of products and services consumed and this resulted in the reduction of excessive consumption with the sense of value for money. The market based instruments like tradable emission permits, fuel taxes have resulted in the reduction of emissions from the transports and aviation industry. The waste disposal taxes, incentives for recycling and taxes on packaging have resulted in changes of behaviour of the households and the business. The incentives for energy efficient heating systems and improved insulation have controlled the heat wave emissions in Europe. The taxes on the pesticides and the fertilizers have also been able to control the pollution due to agricultural activities.
This paper declares that the European Emissions Trading Scheme is a policy measure adopted in Europe where the regulatory measure has been taken to fix the level of emission of parameters that emerge from the sources of environmental pollution and degradation of health issues in Europe.
The incentives for energy efficient heating systems and improved insulation have controlled the heat wave emissions in Europe. The taxes on the pesticides and the fertilizers have also been able to control the pollution due to agricultural activities. European Emissions Trading Scheme The European Emissions Trading Scheme is a policy measure adopted in Europe where the regulatory measure has been taken to fix the level of emission of parameters that emerge from the sources of environmental pollution and degradation of health issues in Europe. The upper limit of the emission level of harmful gases, disposal of wastes has been fixed as compared to certain benchmark or relative to a standard value of the parameter. The European Emissions Trading Scheme works in the following manner. In the initial stages, the emission allowances are first permitted to the sources of emission that causes environmental pollution, depletion of natural resources and other health problems. After initial allocation of the resources, the sources of emission are required to bring down the emission level to the prescribed standard as per the prescribed standard with the help of allowances or permits granted to them within the designated time period of one year (Ellerman, Buchner and Barbara, 2007, p.72). After the designated period of one year, a market for the European Emissions trading would come into action where the sources covered under the scheme would be able to sell or buy the allowances available with them through the process of exchange. The cost or purchase or sell of the allowances for controlling the emissions would be determined by the cost of control of emissions of
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(“Market-Based Instruments of Environmental Policy in Practice: The Essay - 2”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1490438-market-based-instruments-of-environmental-policy-in-practice-the-european-emissions-trading-scheme
(Market-Based Instruments of Environmental Policy in Practice: The Essay - 2)
“Market-Based Instruments of Environmental Policy in Practice: The Essay - 2”, n.d. https://studentshare.org/environmental-studies/1490438-market-based-instruments-of-environmental-policy-in-practice-the-european-emissions-trading-scheme.
The Coasian theory proved to be the most efficient and was thus taken up. The principal design featured rolling out the scheme in three phases, where the first two phases would guide the third one subsequent to the experiences had. In addition, there was an agreement made with particular nations that made the burden of reducing emissions lesser because of their economic capabilities.
Pollution may be caused by different elements such as emission of toxic materials into the air or water streams. Industries have greatly participated in the overall increase of air pollution and hence people and governments all over the world have been seriously concerned about formulating such programs and schemes which might prove fruitful in tackling this challenge.
The scheme works by demanding that operators of installations undertake the specified activities to hold a permit, which enables the installation to emit certain levels of CO2. The paper explores one of the market-Based Instruments of Environmental Policy - EU Emissions Trading Scheme (EU ETS) and appraises it effectiveness in controlling environmental degradation.
It reviews the different Euro standards of emissions and continuous progress in the direction as well as the present emission norms, which has to adhere by the car industry in Europe. It also reviews all the protocols and steps to achieve the emission standards by EU and how it affects the present status of car industry and its requirements.
The first phase runs from 2005-2007 and the second phase will run from 2008-2012 to coincide with the first Kyoto Commitment Period. The scheme will work on a "Cap and Trade" basis. EU Member State governments are required to set an emission cap for all installations covered by the Scheme.
These emissions similarly occur through natural gas pipelines as result of machinery failure and poor maintenance. The World Bank estimates that over 110 billion cubic meters (bcm) of associated gas is vented to the surface worldwide1. Authorities are now
A recent ruling by the European Justice Court keeping the validity of adopted measurements by the EU has additionally contributed to the current discussion. The introduction is sufficient as it highlights the legalities of the EU’s applications concerning its Emissions trading system towards aviation.
Initially proposed in 2001 the Emissions Trading System of the EU (EU ETS) was officially established and launched in 2005 as the first cap-&-trade system for the emissions of carbon dioxide in the world with reference to the Kyoto Protocol
However, the efficiency criterion requires knowledge of both cost and benefits abatement (Yohe, 1996). Market-based policy instruments ensure that efficiency is employed whereby costs are appropriately measured. The instruments have been employed for the
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