Emissions Trading is free Market Environmentalism the Answer?

Abstract

Problem statement: Emissions trading are a product of the ideology of free market environmentalism which propagates the utilization of the market and its forces in order to ensure the protection of the environment from industries and other sources of pollution. Approach: Does the market act as an effective tool to resolve the issue of climate change was the primary reason for initiating research in this area. Another issue with the use of market forces is whether the ultimate objective of environmental protection is achieved in this study this issue is given detailed consideration by aligning emissions trading with the well established principles and environmental ethics. Results: In this study I will critically examine this mechanism and analyze whether it synchronizes with the existing and accepted forms of environment jurisprudential principles and ethics, the ’polluter-pays’ principle in particular. grandfathering has been the primary reason why economists and environmental lawyers across the world argue that it goes against the ’polluter-pays’ principle, in this study I will put forth a comparison between grandfathering and auctioning as a means to provide the carbon emission allowances. Conclusion: In conclusion, this study will come to a more nuanced proposition, wherein I suggest an alternate mechanism for trading of emissions which is more in tune with the international environment jurisprudence and ethics. In this study I arrive at a nuanced conclusion where the current mechanism has been altered to suit the principles established. This is achieved by auctioning where the polluter pays for the right to pollute and the funds obtained from this mechanism will be deposited in an environmental obligation and burden fund which will be utilized in the achievement of environmental protection. The primary significance of this research work is that it brings the current mechanism established in consonance with sound environmental principles and ethics. Through this it makes this mechanism address the environmental paradigm which is presently being ignored.