Economic policy
Is there a fair way to prevent
catastrophic climate change?
Table of content
Introduction...................................................................................................2
How is climate change classified as a tragedy of commons?.....................2
What are the effects of climate change?...................................................3
Is there economic inequality between Developed and Developing
countries?...................................................................................................5
Economic and environmental policies used to combat climate change?......7
Carbon tax.................................................................................................7
Ostrom Design Principles...........................................................................8
Discussion: Are the current economic and environmental policies designed
to combat climate change fair?..................................................................10
Policy Recommendation...........................................................................13
Conclusion...................................................................................................13
Bibliography................................................................................................14
Written by s4302666
,Introduction
This essay analyses the fairness and effectiveness of current economic and
environmental policies designed to prevent climate change, addressed to
developed and developing countries. There is a major imbalance between
developed and developing countries in terms of GDP size, diversification in
energy supply and economic freedom to invest in green technologies. This
report also delves into key frameworks and theories used to develop these
policies, such as Pigouvian taxation and Elinor Ostrom’s principles of
commons governance.
Firstly, the report explores the relationship between climate change and the
tragedy of the commons, highlighting how this phenomenon adversely
affects food security and living conditions in different regions. Next, it
evaluates the effectiveness of the current environmental and economic
policies, like Carbon tax and the Common But Differentiated Responsibilities
(CBDR). It also delves into the continued reliance on fossil fuels by
developing nations using statistical data. Finally, the discussion evaluates
whether policies like Carbon tax truly embody the fairest approach to global
climate policy. While providing suggestions that could help bridge the
economic and environmental gap between developed and developing
nations.
How is climate change classified as a tragedy of commons?
The tragedy of the commons is an economic theory developed by Garrett
Hardin in 1968, describing how individuals or organisations, acting
independently in their self-interest, exploit shared resources to the point of
depletion (Spiliakos, 2019). Negatively impacting communities' welfare in the
long term. Climate change is a perfect representation of this economic
theory, where the earth's atmosphere is perceived as a common resource no
entity controls and is affected by high greenhouse gas emissions driven by
economic and industrial activities.
Written by s4302666
, Figure 1 displays the leading contributors to climate change, this image is
from the Department for Environment Food & Rural Affairs (n.d).
With the largest contributor to climate change being the consumption of
fossil fuels like coal, oil and natural gas which emits carbon dioxide (UK air,
n.d), please look at Figure 1 for visual confirmation. This causes the Ozone
layer to weaken allowing more ultraviolet radiation from the sun to hit the
earth's surface, which leads to increased temperatures causing major
wildfires and droughts (UK air, n.d). The pursuit of short-term gains by both
state and non-state benefactors has led to widespread environmental
degradation, disproportionately affecting the most vulnerable.
What are the effects of climate change?
Climate change poses a direct threat to society, in terms of food security and
living conditions. According to the World Bank (2022), the number of people
experiencing acute food insecurity increased from 135 million in 2019 to 345
million across 82 countries by mid-2022. While geopolitical shocks such as
the COVID-19 pandemic and the Russo-Ukrainian war have contributed to
this, climate change has irreversible effects that affects us in the long term.
The rise in global temperatures has led to increasingly unpredictable
weather patterns, including severe droughts, rising water levels, and
heatwaves which have affected food production and access to clean water
(UN, 2022).
The regions of Sub-Saharan Africa, South Asia and Southeast Asia face the
worst impacts of climate change, where more than 80% of the population
face severe risks from crop failures caused by climate change (World Bank,
Written by s4302666
Is there a fair way to prevent
catastrophic climate change?
Table of content
Introduction...................................................................................................2
How is climate change classified as a tragedy of commons?.....................2
What are the effects of climate change?...................................................3
Is there economic inequality between Developed and Developing
countries?...................................................................................................5
Economic and environmental policies used to combat climate change?......7
Carbon tax.................................................................................................7
Ostrom Design Principles...........................................................................8
Discussion: Are the current economic and environmental policies designed
to combat climate change fair?..................................................................10
Policy Recommendation...........................................................................13
Conclusion...................................................................................................13
Bibliography................................................................................................14
Written by s4302666
,Introduction
This essay analyses the fairness and effectiveness of current economic and
environmental policies designed to prevent climate change, addressed to
developed and developing countries. There is a major imbalance between
developed and developing countries in terms of GDP size, diversification in
energy supply and economic freedom to invest in green technologies. This
report also delves into key frameworks and theories used to develop these
policies, such as Pigouvian taxation and Elinor Ostrom’s principles of
commons governance.
Firstly, the report explores the relationship between climate change and the
tragedy of the commons, highlighting how this phenomenon adversely
affects food security and living conditions in different regions. Next, it
evaluates the effectiveness of the current environmental and economic
policies, like Carbon tax and the Common But Differentiated Responsibilities
(CBDR). It also delves into the continued reliance on fossil fuels by
developing nations using statistical data. Finally, the discussion evaluates
whether policies like Carbon tax truly embody the fairest approach to global
climate policy. While providing suggestions that could help bridge the
economic and environmental gap between developed and developing
nations.
How is climate change classified as a tragedy of commons?
The tragedy of the commons is an economic theory developed by Garrett
Hardin in 1968, describing how individuals or organisations, acting
independently in their self-interest, exploit shared resources to the point of
depletion (Spiliakos, 2019). Negatively impacting communities' welfare in the
long term. Climate change is a perfect representation of this economic
theory, where the earth's atmosphere is perceived as a common resource no
entity controls and is affected by high greenhouse gas emissions driven by
economic and industrial activities.
Written by s4302666
, Figure 1 displays the leading contributors to climate change, this image is
from the Department for Environment Food & Rural Affairs (n.d).
With the largest contributor to climate change being the consumption of
fossil fuels like coal, oil and natural gas which emits carbon dioxide (UK air,
n.d), please look at Figure 1 for visual confirmation. This causes the Ozone
layer to weaken allowing more ultraviolet radiation from the sun to hit the
earth's surface, which leads to increased temperatures causing major
wildfires and droughts (UK air, n.d). The pursuit of short-term gains by both
state and non-state benefactors has led to widespread environmental
degradation, disproportionately affecting the most vulnerable.
What are the effects of climate change?
Climate change poses a direct threat to society, in terms of food security and
living conditions. According to the World Bank (2022), the number of people
experiencing acute food insecurity increased from 135 million in 2019 to 345
million across 82 countries by mid-2022. While geopolitical shocks such as
the COVID-19 pandemic and the Russo-Ukrainian war have contributed to
this, climate change has irreversible effects that affects us in the long term.
The rise in global temperatures has led to increasingly unpredictable
weather patterns, including severe droughts, rising water levels, and
heatwaves which have affected food production and access to clean water
(UN, 2022).
The regions of Sub-Saharan Africa, South Asia and Southeast Asia face the
worst impacts of climate change, where more than 80% of the population
face severe risks from crop failures caused by climate change (World Bank,
Written by s4302666
