International Trade and The Kyoto Protocol Essay -- Kyoto Protocol Pol

International Trade and The Kyoto Protocol Pollution, specifically global warming, is of growing concern to people and governments. It is a controversial issue whose validity is still being debated by scientists. The Kyoto Protocol is an international attempt to address global warming through emissions controls. Traditional neoclassical economic models do not incorporate pollution in rudimentary theories of supply, demand, or pricing, as a result, firms do not consider pollution as a cost of production, which leaves government regulation as the primary method for controlling these externalities. The goal of emissions trading is to allow one business, which can make greenhouse gas emission reductions for a relatively low cost, to sell the rights to those reductions, or credits, to an entity which would find it more expensive to achieve the same level of reduction through in-house activities. Unfortunately, public sentiment on the Kyoto Protocol focuses only on the end goal of reducing greenhouse gas emission and does not look at implications of the agreement. The Kyoto Protocol attempts to establish an international agreement to lower global emissions through a combination of domestic and offshore policies. While domestic policies can have an effect on international markets, they are considered less important than offshore policies. It is the offshore policies of emissions trading, clean development mechanisms, and joint implementation, which are predicted to have the greatest impact on emissions controls and international trade. This paper will outline the provisions of the protocol and attempt to explain some of the shortcomings which may have led to the United States withdrawing its support for the agreement. The ... ...al. It needs to include provisions for monitoring and enforcing standards. Environmental improvements may be better accomplished without credit trading. Instead, global standards and an international body of power may be more effective, similar to the WTO and trade. Works Referenced Carter, R.G. (2002). Contemporary Cases in U.S. Foreign Policy. CQ Press. Washington D.C. Chambers, W.B. (2001). Inter-linkages: The Kyoto Protocol and the International Trade and Investment Regimes. United Nations University Press. New York. Kerr, S. (2000). Global Emissions Trading: Key issues for Industrialized Countries. Edward Elgar. Great Britain. McKibbin, W. J. (2000). Moving Beyond Kyoto. The Brookings Institute. Washington D.C. McKibbin, W.J., Wilcoxen. P.J. (1999). Permit Trading Under the Kyoto Protocol and Beyond. The Brookings Institute. Washington D.C.