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Benefits of Going Green - Essay Example

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With the rising significance of sustainable development in the recent years, the environmental policies of all companies have undergone significant changes based on sustainable development approach. The main initiatives include inclusion of environmental vision into corporate culture…
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Benefits of Going Green
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Download file to see previous pages At a global level, sustainable development has gained importance ever since the United Nations Framework Convention on Climate Change. Based on the UNFCC Article 3.4, sustainable development needs to be integrated with national development policies by considering the need for economic development to address climate change problems. In this convention, the focus has been more on reduction of greenhouse gas emission and their targets than on sustainable development. After this, much discussion has been done on the links between sustainable development and climate change and the inclusion of sustainable development concept in environmental policy.

The sustainable development requirements approach to environmental policy started in developed nations first. Reports show that greenhouse gas emissions are going on rising with the ongoing economic reforms that aim at improving economic growth (Mc Kibbin, 2004). Based on economic theory, there are two main mitigation measures to reduce the greenhouse gas emission. One is a tradable permit system for emission rights and the other is taxing carbon emissions....
Studies have shown that the permit system for emission rights developing nations will result in a rise in costs in terms of sacrificing economic growth since most economic activities rely on energy here. The shift from cheap fossil fuels to expensive non-carbon energy will adversely affect economic growth and development (Prasad and Kochher, 2009). Recent estimates show that the cost for investment in reducing greenhouse gas emissions by 550 MtCO2 in the major energy emitting sectors cost S$25billion, which is equivalent to the amount needed for the development goals here(Prasad and Kochher,2009). The next possible option is carbon taxing. Taxing can be practically problematic since the taxes will be imposed on not only the emissions that are removed on the margin but on all emissions. Consequently, the income transfers from the firms to government will be very much larger than the costs of greenhouse gas emission abatements (McKibbin, 2004).Thus it can be shown that any form of abatement measure will impose significant costs in terms of sacrificing economic growth and development in developing nations. This will not be a problem for developed nations, which have already achieved a high level of development in terms of all the indicators while in developing nations, where most people live below the poverty line, sacrificing development means a lot. Based on the different scandals that arose in the recent years like Enron scandal, it is argued that business ethics is essential which plays a major role in the functioning of companies (Broomhill, 2007).Studies show the beneficial effects of green policy depend on the expectations of stakeholders and the constraints placed by the restrictive legislations produced by the states(Broomhill, ...Download file to see next pagesRead More
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