Sunday, 25 May 2014

Week nine: Policy design



Source: http://greenlivingblogorguk.files.wordpress.com/2012/05/policy.png

Mitigation and adaptation both play a role in the Climate Change debate. Also because of the uncertainty in the outcome of this debate, both mitigation and adaptation will play a role in climate policy. We now for sure that because of human actions each year, more and more greenhouse gases are trapped in the atmosphere. We do not know for sure how the climate will change because of those greenhouse gase. So which policies need to be installed to limit greenhouse gas emissions? Two approaches are popular : we can either do nothing, since nothing is going on (or it is too small to have an effect) or we must take drastic actions because the outcomes will be disastrous. If we combine these two extremes, we would get a policy which simultaneouslyfocuses on mitigation and adaptation, especially if these would both be low-cost strategies. Mitigation also involves taking action now and adaptation involves taking action in the future. The role of the government in this scheme is to provide a clear view on property rights and to restrain certain activities that proliferate emission. The government can also create markets which focus both on costs and on the environment. These markets can facilitate environmental goals in the long run at low economic cost. If we look at the world energy markets for example, energy subsidies can be used to develop cleaner technology and make the poor have better access to modern energy. And yes, policy makers should design new energy subsidies in an environmentally, socially and economically friendly way.
http://een-dev.anu.edu.au/download_files/een0306.pdf
http://www.unep.org/pdf/pressreleases/reforming_energy_subsidies.pdf

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