Global
warming is the long-term climate changing process that includes rising of the
average temperature in the earth climate system. The occurrence of global
warming is due to the emission of carbon dioxide and air pollutant in the
environment. The emission of these toxic gases is due to greenhouse gases that
are collected in the atmosphere and absorbance of solar radiation and sunlight
in the environment (Carbonbrief. org, 2018). These radiations
are not able to escape due to these pollutants and the process last for the
years to centuries. The heating of the planet is due to these greenhouse gases
and consequently, it leads to global warming. In order to reduce the effect of
global warming different methods are devised that are based on the market
strategies (Nordic. org, 2016). The cap and trade program is one of
these programs that consider regulation and laws and limitations. The main
objective of the cap and trade program is to reduce pollution in the
environment. The cap program is on the greenhouse gas emission that derives
limitation on pollution and global warming (Climate. nasa. gov, 2019). The cap and trade
program provides important and robust design features provided by the European
Unions Emission Trading Scheme (EU ETS) that works to reduce the heat-trapping
emission. The objective of the present work is to identify the importance of
cap and trade programs. It is based on evidence of global warming, the economic
impact of global warming and cap and trade program, and government policies
implemented to reduce global warming.
Evidence that global warming is real
The
climate of the earth has changed throughout history. In the past 650,000 years,
the seven cycles of the glacial advances retreat through 7000 years. The report
provided by NASA provides climate changes in the earth orbit and solar energy
system of the planet. There is some unequivocal evidence of global warming and
climate change (Climate. nasa. gov, 2019). The earth orbiting
satellites provides data collected to evident the change in the climate system.
The ice cores of Antarctica, Greenland and tropical mountain glaciers show
rapid climate responds with the change in the levels of the greenhouse effect.
The ancient evidence is tree rings, coral reefs, ocean sediments, and layers of
the sedimentary rocks. The other ancient evidence of global warming is the
average rate of the ice age recovery. The average surface temperature of the
planet has increased by about 1.62 degrees Fahrenheit. Most of the warming of
the earth occurred in the past 35 years (Climate. nasa. gov, 2019). The increased
amount of heat is absorbed by the oceans and warming of the ocean reached 700
meters with 0.4 degrees Fahrenheit since 1969. The experiment of NASA about gravity
recovery and climate shows that during 1993 and 2016, Greenland lost 286
billion tons of the ice per year. The higher rate of mass loss of ice is also
observed in Antarctica. The intense rainfall and ocean acidification are also
strong evidence for the existence of global warming (Climate. nasa. gov, 2019).
Economics of man-made global warming
In
the United States, the production of electricity is due to the burning of
fossil fuels and consequently, it leads to the formation of heat-trapping
pollution. The annual production of carbon dioxide is about two billion tons (Epa. gov, 2017). The biggest
polluters are coal-burning power plants. The country stands on the top second
largest source that produces carbon pollution in the transportation sector. The
generation of carbon dioxide in the United States is about 1.7 billion tons
annually (Epa. gov, 2017). Two findings are proposed by EPA about
the relation of greenhouse gases including carbon dioxide, nitrous oxide,
methane, sulfur hexafluoride, hydrofluorocarbons, and perfluorocarbon. The
effect of melting polar ice and raising in the sea levels causes a collapse of
the marine ecosystem with the increase in water stress (Epa. gov, 2017). According to the report of World
Health Organization (WHO), more than 40,000 people per year are dying in
Southeast Asia and Africa. The reason is climate change and rising sea water
levels. The record-breaking increase in the global temperature is observed in
2014, 2015, and 2016. The emission of carbon dioxide in these years was
estimated as 33 gigatons (Epa. gov, 2017). The higher decrease was in the
economic growth rate was observed in the case of China. According to the
distribution of carbon dioxide gas emission in the main emitters the graphs
shown in figure 1 shows that China (29%), United States (15%), India (6%),
European Union (11%), Russia (5%), and Japan is at 4% (Epa. gov, 2017).
Figure
1: Percentage
of Global CO2 Emissions by Country/Region
Source: http://www.ase.tufts.edu/gdae/education_materials/modules/The_Economics_of_Global_Climate_Change.pdf
Importance of policies implemented by the
government, Global warming
In
order to address the global warming effects, the government is responsible to
reduce the amount of heat trapped due to emission in the atmosphere. The demand
for action is to reduce the factors affecting global temperature and atmosphere
(Mfe. govt. nz, 2019). The government
agencies are responsible to introduce policies on climate change. The ministry
of environment is responsible to develop, coordinate, and implement the climate
change policies that reduce greenhouse gas emission (Climate. nasa. gov, 2019). The United Nation
Framework convention is working on climate change and the Kyoto protocol. The
New Zealand emission trading scheme (NZ ETS) coordinates with the adaptation
work program of the government. Besides the government, the regional, unitary,
and district authorities are also responsible to promote social, cultural,
environmental, and economic policies (Mfe. govt. nz, 2019).
Cap and trade working process of Global
warming
There
are two principle methods that work collectively in the cap and trade working
process. the initial consideration is to introduce a system that reduces
pollution in the atmosphere. The cap on the greenhouse effect is the first step
that introduces limits on pollution. The trading gives a strong incentive to
the company for saving the money by cutting the emission in a cost-effective
method (Edf. org, 2019). In this method, the government sets a
cap on the companies and industries that are based on the economy of the
company. In case of violation of rules, the penalties are decided by the
government. The total amount designated
for the cap is segmented in different considerations including allowances,
permits, and emission of one ton of carbon dioxide (Edf. org, 2019). The cap is typically inclined to the
decline of the time and provides higher incentives for the business and
industry and cost of production decreases. In trading condition, the companies
cut their pollution as the production process is often flexible. In this
situation, the pool for the available capital is reduced that cut pollution
faster and the rewards and innovation become effective. The cap and trade
process is lowering the emission level globally. The central program is
existing in the strategy of China (Edf. org, 2019; Climate. NASA. gov, 2019).
Importance
of cap and trade of Global warming
The
cap and trade process is significantly important to reduce the global warming
and emission of warm gases. The importance of the process can be estimated by
the popularity of the program in different countries (Carbonbrief. org, 2018). There are a number
of countries working on the cap and trade program to reduce global warming and
these countries are listed below,
1. The
cap and trade program is highly implemented in China strategy and emission
trading system. The central component of the strategy is to tackle the climate
pollution.
2. The
cap and trade are used in seven cities and provinces of China (Edf. org, 2019).
3. In
the case of European Union emission trading system, the capped emissions are
becoming higher and the stationary structures are lower than 26%.
4. In
the case of united states, the California climate policies are working on the
steady process of declining the pollution of carbon dioxide in the state. The
emission in California after the implementation of cap and trade system is
reduced by 8.8 percent and the program was launched in 2013 and 2016 (Edf. org, 2019).
5. The
cap and trade system is a simple mechanism that reduces the direct tax.
6. The
cap system goes into effect to reduce the risk of investor and clarify the long
term reduction of carbon goals.
7. The
carbon caps induces essential guardrails that enable to control the stimulus of
spending and investment that secures the energy economy (Mfe. govt. NZ, 2019).
Conclusion on Global
warming
Summing
up all the discussion about the global warming, heating factors of the earth,
greenhouse effect and cap and trade system it can be concluded that global
warming induces an adverse effect on the living system and earth atmosphere.
There are sufficient processes that cope up with the issues related to
environmental problems, but global warming requires improved strategies to be
implemented and to reduce the impact of certain factors. The evidence of global
warming provided in the discussion proves the existence of global warming.
There are different policies, rules, and regulations developed by the
government of different countries to reduce the greenhouse effect and global
warming.
References of Global
warming
Carbonbrief. org. (2018, 06 19). ‘Powerful
evidence' of global warming's effect on seasons found in the troposphere.
Retrieved from www.carbonbrief.org:
https://www.carbonbrief.org/powerful-evidence-global-warmings-effect-seasons-found-troposphere
Climate. NASA. gov. (2019).
Scientific evidence for warming of the climate system is unequivocal.
Retrieved from climate.nasa.gov:
https://climate.nasa.gov/evidence/
Edf. org. (2019). How
cap and trade works. Retrieved from www.edf.org:
https://www.edf.org/climate/how-cap-and-trade-works
Edf. org. (2019). How
cap and trade works. Retrieved from www.edf.org:
https://www.edf.org/climate/how-cap-and-trade-works
Epa. gov. (2017, 01 19). Economics
of Climate Change. Retrieved from www.epa.gov:
https://www.epa.gov/environmental-economics/economics-climate-
change
More. govt. NZ. (2019). Roles
and responsibilities of government for climate change. Retrieved from
www.mfe.govt.nz:
http://www.mfe.govt.nz/climate-
change/we-all-have-role-play/roles-and-responsibilities-of-government
Nrdc. org. (2016, 03 02
). Global Warming 101. Retrieved from www.nrdc.org:
https://www.nrdc.org/stories/global-warming-101
