chapter6externalitiesinaction

chapter6externalitiesinaction内容摘要：

f Metric Tons of CarbonThe . is currently responsible for nearly 25% of the pla’s carbon dioxide emissions. Japan contributes only 5% of annual emissions. Developing counties like China and India emit large quantities of greenhouse gasses. The Kyoto Treaty  The goal of the Kyoto treaty in 1997 was to reduce the emissions of greenhouse gasses to 5% below their 1990 levels.  United States and Russia have not signed on。 many other of the 38 industrialized nations have, however.  For the United States, the Kyoto treaty would:  Mean reducing emissions in 2020 by roughly 30%  With a present discounted cost of $1,100,000,000,000 ($ trillion)  The United States would bear 90% of the total world cost, even though it contributes only 25% of annual greenhouse gas emissions. Can Trading Make Kyoto More CostEffective?  Kyoto treaty introduced international emissions trading.  Under the Kyoto treaty, the industrialized signatories are allowed to trade emissions rights among themselves, as long as the total emissions goals are met.  There are tremendous differences across developed nations in terms of meeting these goals, for two reasons:  Slow growth in some countries: Relatively easy for a country like Russia to meet its goal. Estimates suggest that emissions trading (say, from Russia to United States) could lower the cost of the treaty by 75%.  Environmentally conscious growth: Other countries, like Japan, tend to use more gas and nuclearpowered production.  Figure 3 shows the benefits of international emissions trading (the readings for today give an update from the Montreal, the site of the most recent international climate change meetings). Figure 3 The benefits of trading Yet the treaty calls for the . to reduce emissions a lot. Carbon Reduction (millions of metric tons) Price of carbon reduction 0 630 It is fairly expensive for the . to reduce its emissions. SUS SR $210 $20 440 190 It is easier for Russia and others to reduce their emissions. And the requirements are lower, too. The total cost to the . is 440x$210. The overall cost, with no emissions trading, is $96 billion. ST $50 With emissions trading, the supply curve is summed horizontally. The cost of worldw de emission reduction is $50 per ton with ST. 590 The total cost to Russia and others is 190x$20. The . buys 400 permits (44040). The overall cost, with emissions trading, is $32 billion. 40 A Third Externality Example: The Economics of Smoking  Smoking causes more than 440,000 deaths each year, four times as much as AIDS, motor vehicle accidents, homicide, and suicide bined.。