lecture 5 Regulation Flashcards
carbon trading
european union gives carbon allowance to companies. If they need to use more, they trade on of their caron allowances.
They can buy or sell them at the market.
If the EU wants to reduce emissions, they give out less carbon allowances and they become more expensive on the market
Carbon trading is a form of incentive to reduce emissions.
if you emit less, you do not need to buy extra allowances
specifically, its an incentive for mitigation
Three advantages of carbon trading
They ensure environmental protection
They reduce (economic) waste
They maintain liberty
Objection 1 (carbon trading)
Owning what souldnt be owned
carbon trading assumes human ownership of the earths resources
Specifically, of the atmosphere
The planet/nature is not/should not be treated as private property
Respones to objection one
CT does not assume ownership of atmosphere, but is a way to put a limit so the maximum absorption capacity is not exceeded
Objection 2 (Carbon trading)
Alienating responsibility
Each individual (person or firm) needs to do their bit
The right kind of sacrifice (cant pay someone to do it for you)
it wouldnt be ethical if firms have the wrong motivation
(i.e. buying carbon allowance because they dont care)
Carbon trading “undermines the sense of shared responsibility that global cooperation requires” and potentially moves the burden to poor countries
Response to objection 2
Multi nationals moving their most contaminating activities to other countries with less regulation does move the burden to those countries
In principle it is not wrong to sell something you dont use (i.e. carbon allowances)
they admit trade needs to be constrained by principles of fairness
Objection 2 (Carbon trading)
Carbon markets allow trades that disadvantages the most vulnerable
Related to the previous point, but in case focused on the vulnerable party choosing the potential harm
I.e. poor countries accepting the harm from further emissions due to economic need
Response to objection three
Does not apply to environments like the EU, carbon trading works there
Objection 4 (carbon Trading)
Carbon market puts a price on nature
Allows free trade on certain things diminishes the value of those things (some things can be measured in money)
Response to objection 4
Nature has intrinsic value, so its value cant be diminished
The price of carbon allowance is a price on emissions, not an estimation of the value of nature
Objection 5 (carbon trading)
Some actions are wrongs that need to be punished (fine), not just incentivized against through monetary cost (fee)
The distinction between a fine and a fee for despoiling the environment is not one we should give up to easily. Suppose there were a 100 euro fine for throwing a beer can into the grand canyon, and a walthy hiker decides to pay 100$ for the convenience. Would there be nothing wrong in his treating the fine as if it were simply an expensive dumping charge?
Response to objection 5
This is not a wrong since buying other firms carbon allowance means they pollute less
Doesnt matter
