Technological and Market-Based Solutions - Assignment Example

Is a combination of technological and market-based solutions sufficient to address the root causes of climate change?Failure to address climate change involves not only endangering the future generations but also inflicting heavily on them making their circumstances more challenging than they would be without the climate change. The current climatic changes are not naturally occurring; they include a raft of political choices about policies such as the energy policy forming the basis of the radical shifts of climate conditions. The future of our planet much depends on how we address the changes in climate today, without suspecting sometimes we endanger the future generations, which is why a raft of changes and strategies should be incorporated to arrest the situation and safeguard our future. There exists no single solution to tackle climate change experienced though global warming, heat-trapping of Carbon (iv) oxide, methane and nitrogen (iv) oxide, thus different mechanism interrelate to help bring down gas emissions into the atmosphere. The U.S political class response to probable market-based solutions to climate policy has been and may continue to be largely a function of issues and other factors beyond the scope of the environment and climate policy. Some are of the view that good economic run may slow the pace of politics polarization especially since major environmental and climatic laws are in the wake of disasters. In passing legislation, effective climate change policy must facilitate the production of clean energy and its efficient use, low carbon-intensity of energy and a more carbon-lean economy. To accomplish such tasks, mechanisms such as sensitizing individuals and business investments to change their behavior, subsidizing individual and business investments and the price of greenhouse gas externality proportions have been adopted. Technology innovation has also been mooted to play a significant role in tackling climatic change (Role of climatic change in global Economic Governance, Pp 18). The focus in technology has been on how to overcome challenges in technology diffusion i.e. the legal (in regard to Intellectual property and subsidies), economic, financial and political challenges. Market-based strategies such as pricing externalities can facilitate cost-effective abatement; provide efficient innovation incentives and government fiscal policies. In pricing the carbon emissions, the government gives incentives to individuals and companies to identify and implement best and low-cost ways to reduce emissions. The firms and individuals are also expected to invest in the development of new technology, processes and ideas that can mitigate future carbon emissions. Various approaches to this technique have been used, they include; carbon taxes, cap and trade and clean energy policy. The cap and trade has been hailed by many as the most innovative yet most complex tool towards the control of greenhouse emissions and facilitated the development of carbon neutral energy infrastructure. It aims at providing firms with better flexibility in selecting the least costly tool of compliance and provision of capital to support clean energy technologies (Climate change and the private sector, Pp 84). Such externalities have exhibited the effectiveness of market-based solutions. Congestion charges affected in the cities of Singapore; London and Stockholm have led to the reduction of traffic congestion in urban areas. It has also resulted to a reduction in air pollution and provided net social benefits. In the U.S, the Sulphur (IV) Oxide (SO2) cap and trade program has led to the reduction of SO2 emissions from power plants by almost half since 1990. Its success motivated the design and investment in the EU’s Emission Trading Scheme (EU ETS) to reduce power plant emissions in Europe. The positive results have provided credible reason to consider market-based solutions as probable approaches to mitigating greenhouse gas emissions. Zero-carbon technologies are critical in the reduction of gas emissions. Carbon credits have been identified as the immediate solutions towards the reduction of Green House Gas (GHGs). The credit allows individuals or business investments to emit at least one ton of carbon (IV) oxide. The credits are given to nations that have reduced their greenhouse gas emissions. They are traded at the carbon trade exchange through voluntary market and the compliance market. On the regulatory or compliance market the credits are produced through projects that are by the United Nations Framework Convention on Climate Change. The production and sale of the carbon credits raise funds for carbon projects that would not have progressed. Carbon credits assist in the lowering of costs of renewable and low carbon technologies and also assisting in the technology transfer in emerging markets and third world countries. Conventional technologies do not provide evolutionary solutions for the development, adoption and environmentally and economically better control technologies. Government efforts for lower-emitting technologies take the form of investment and performance subsidies. Issuing subsidies to climate-friendly technology constitutes revenues raised by taxing other economic activities. A report from Global Energy technology Strategy suggest that’s the cost of stabilizing the atmospheric concentration of greenhouse gas emissions can be lowered by trillions of dollars. The 2007 Global Energy Technology Strategy gives a detailed report on the role of detailed studies on the role of technology in tackling climate change. The report suggests the potential contributions and costs of six energy technology aspects to reduce greenhouse gases emissions. Such include; carbon dioxide capture and storage, biotechnology, hydrogen energy and other advanced transport technology systems, wind power and solar energy, end-use energy technologies, boosting energy efficiency, phasing out fossil fuels, forest management and agriculture, nuclear power and sustainable development. The report suggests that the technology strategies when employed together at large scales could eliminate tons of greenhouse gas emissions. It goes deeper to explore the economics of potential solutions. Understanding the economic framework assist decision makers balance the energy costs of technology development against other priorities. A unique feature of the analysis was looking at the technology ability to deliver products to consumers in a cost effective manner and a way that reduces greenhouse gas emission. However, practically, the subsidies are designed to be technology specific. An approach such as designating technology winners yield special interest groups aimed at maintaining subsidies up which it would not be as socially desirable. They also provide minimal incentive for the development of superior technology. Thus, subsidies can undermine incentives for conservation and efficiency and charge higher costs per ton than the cost-effective policy alternatives. Some urban centers have also devised the green transport system. Various solutions are in place to improve efficiency i.e. miles per gallon in all types of transport; it involved conversion to low-carbon fuels and reduced miles per hour travelled through smart development and mass transportation systems. Technology and market-based solutions are well placed to tackle the causes of climate change such as greenhouse emissions and global warming. Technology has been at place to ensure that cleaner and cost-effective means to generate clean energy and curb the climatic change. Governments have been at the forefront in facilitating clean energy production by investing in solar and wind energy, geothermal wells that enhance energy production without emitting toxins to the atmosphere. More recently, SolarCity Corp. became the first U.S firm to offer bonds secured by rooftop panels raised $201.5 in its third bond offer. The firm installs rooftop solar systems to consumers who pay a little upfront, but sign long-term agreements to purchase electricity. Fossil fuels have long been used to generate electricity, hydro and thermal power. However, the sensitization of global warming has ensured that real estate developers have incorporated technology to new construction methods aimed at energy conservation. Solar heating panels are installed to new buildings; glass building technology enhanced use of natural light as opposed to electricity was a cost saver and effective way to reduce global warming. Trading of carbon credits has also assisted in ensuring that carbon projects proceed without interruptions. Dr. Wildcat, a faculty staff in the School of American Indian Studies at the Haskell Indian Nations University and also a co-founder of the Haskell Environmental Research Studies Center, states (in an interview by IEEE GR-S Newsletter, June 2006) that the planet is complex and to comprehend strides made by Geosciences it needs a deeper appreciation for the planet earth interrelationships than currently exists. He argues that integration and examination of experiential traditions of learning and acquisition of knowledge may prove crucial in multi-disciplinary research. He further states that the modern man is disconnected from the non-human-made environment yet the problem we face today, in part are the result of how we take care of the human-made environment. Wildcat is of the opinion that the problems and challenges experienced today require the inclusion of different approaches especially those that have origin in customs, tribal ways since they are closely connected to earth; that is why he believes that local or native students who practice experiential-based education make good Geospatial students. Wildcat was trying to create awareness of the importance of geosciences and the need to educate young people that geosciences is broad and its immense value and contribution towards the ecosystem. Technological and market-based solutions alone are not enough to combat the climate change. Other factors such as political goodwill, goodwill from individuals and business investments and innovations contribute immensely towards the climate change control. Their multidisciplinary and interrelation shows that climate control is a pull of factors from individuals to government that contribute to make the world a better place for future generations. References Condon B., & Sinha T., (2013), The Role of Climate Change in Global Economic Governance. Oxford Press Pp 18 Hart C., (2013), Climate Change and the Private Sector: Scaling up private Sector Response to Climate Change. Routledge Pp 84 Read More