Cap And Trade Policy Economics Essay

Cap And Trade Policy Economics Essay The aim of this paper is to take a deeper look into the functioning of the European Unions emission trading system with the emphasis on economic and political facts and by analizing major problematic issues linked to it. The papers research question is focusing on the possible ways of amelioration of effectiveness of the European Unions present-day emission trading system. So that Which areas of the European Unions emission trading system are appearing to be the most problematic and hindering ones?. In this paper I am attempting to review both basic facts and problematic issues in order to conclude in a reasonable overview. 1.2. Introduction Today the European Union is one of the most environmental conscious actors on the international stage. By its cap-and-trade policy, which has reached serious CO2 and greenhouse gas emission reductions in most of the member states throughout the previous years, it has risen to be one of the most successful emission regulators. In both Phase I ( January 2005-December 2007) and Phase II (January 2008 December 2012) there have been serious carbon emission reductions in the European Unions area. In Phase I. only on the lower prise of 40 euros per tonne of carbon gases, and in Phase II. on the higher price of 100 euros per tonne.  [1]  By giving a price to carbon emissions (tCO2e) the governments since the Kyoto Protocol (1997) are able to check their emissions and air pollution even on the balance sheet. Nonetheless, giving a price to emissions is also helping to give air pollution a kind of value and also interest in the reduction of it. Nevertheless, there are still major unsolved and doubted issues on todays Phase II.s effectiveness and on the future success of Phase III. being launched in the very beginning of 2013. These doubts are created by serious problems within the European Unions cap-and-trade policy, and the problems are mostly depending on wrong economic models and practices used, moreover on the lack of monitoring of the emission trading market. Basically it is the European Commission, monitoring all emission credit trading processes is attempting to ensure all member states, that all transfers are legal and that there are no abuses on the European carbon trading markets. 1.3. Arguements on the Europen Unions carbon trading scheme As having a classical cap-and-trade system, the European Union is basically focusing on the reduction of CO2 and greenhouse gas emissions. Most likely by its cap-and trade policy now affecting about 45% of CO2 and less than 40% of greenhouse gas emissions of the European Union. Within the CAT transportation, agriculture and public services are not included, yet. And most possibly will not be included in the near future.  [2]  The system of carbon trading is quite simple. Installations are receiving emission credits -where 1 credit is equal to 1 metric-tone of CO2 from their member states government. If the installations run out of their emission credits, they can purchase it from other governments of companies. On the contrary, if they have more emission credits than as much they need, they can sell their credits for other installations. By buying emission credits, the installations are trying to reduce their ecological footprint, however this is only a theoretical reduction and not a real one. The stock exchange of carbon credits is a system where these credits can be sold privately or on the international market on a market price. By giving a market price to carbon credits, the sellings and buyings can appear on the balance sheet. Right now it is highly critisised that the European Unions emission trading system gives a price to CO2 and greenhouse gases making it a simple matter of economic interest instead of giving to it an environmental emphasis.  [3]   The European Unions energy policy is now focusing on the major issues of climate change, global warning and higher energy prices. Its objective is to eliminate CO2 and greenhouse gas emissions in order to reduce the possibility of temperature rise above 2 C.  [4]  However, this aim of reducing the possibility of temperature rise seems more or less an impossible mission as the European Union is not the only polluter of air in the world. China and the United States of America mean a very serious threatment of emissions the USA havent even ratified the Kyoto Protocol in 1997 and so the reduction of European CO2 and greenhouse gas emissions seems more to be like pouring water into a leaky bucket, making it very difficult for the European Union to work for a cleaner environment. Looking further, by the Action Plan, the European Union is now willing to eliminate even more its emissions. The objective is to reduce todays greenhouse gas emissions by 30 % by 2020 throughout its new strategy within the Energy Policy.  [5]  After the crisis of 2008 in my opinion such serious and enormous objectives can be reached on a very hard way or cannot be reached at all, as right now the economic development is much more important for the member states than the cut of further emissions. The European Union has a tradition using economic instruments to treat external costs as inner ones in order to prepare the market to answer with limited costs. So, in the future the emission trading system of the European Union remains a crucial part within the Energy Policy as it is highly contributing to stimulate chnages in the usage and generation of energy.  [6]  As a single economic explanation, we can state that in general in a small open market  [7]  firms are looking for the minimalisation of their costs throughout production. In a market like this, emission taxes or other regulations like emission intensity restrictions are forcing firms to pollute by counting and paying the fee per unit or purchase pollution rights. By this practice the governments target of emission can be realizable.  [8]   The European Unions green taxation, or so-called Pigou taxation process is the most market-friendly way in order to eliminate the member states CO2 and greenhouse gas emissions. As I have mentioned it earlier, it is crucial to internalize externalities to solve major market failures. The Pigou tax  [9]  serves as a main external cost integrated into market prices.  [10]   Main advantages of the carbon taxation are: 1. Average price for all member states, helping firms to fix their prices of emission 2. Giving a price for emissions develops low-emission technologies 3. Carbon taxation can seriously eliminate emissions by supporting shift towards greener technologies Main disadvantages of the carbon taxation are: 1. Carbon taxation makes it difficult to follow emission reductions 2. Carbon taxes can generate high administartive and implementational costs.  [11]   It is very important to highlight, that carbon taxation and the selling of carbon credits are not equal. they are both forming an important role within the reduction of emission, however the cap-and-trade system of the European Union is using carbon credits since the Kyoto protocol in 1997. Taxes can be set by the governments and so they can regulate taxes by their preferences and needs and so it is very difficult to get a clear picture of carbon reductions. Nevertheless carbon creditscannot be regulated on such a strick way like taxes and so emission trading is able to become a single market operation. OECD in its paper, called à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ is focusing ont he combination of à ¢Ã¢â€š ¬Ã‚ ¦.. Combining cap-and-trade policies with other instruments and policy fields could seem as a solution in order to achieve additional serious emission reductions. On the contrary, this would result in increase of emisssions from the other given areas, too. Moreover, within cap-and-trade policy more sources would be availabe for further emissions. So, when a cap-and-trade system comes to life, the combination of this policy with other instruments is useless, as further reductions in the emission of CO2 and greenhouse gases will not occur.  [12]   A very well designed cap-and-trade system could solve both environmental and economic problems within the member states of the European Union. Nevertheless, as a major mistake, those policy makers of the member states combining emission trading policies with other instruments in order to reduce costs and emission, may concentrate too much on todays environmental outcomes, without focusing on future reductions.  [13]   It is very important to note, that the European Union had a significant role in the set up of both the Kyoto Protocol and the Rio+20 Conference. At Kyoto, the member states have agreed to cut their emissions with comparing to the 1990 levels by 2012.  [14]  These are also representing the environmental consciousness of the European Union which is ready to eliminate emissions by signing international environmental treaties. However, sadly in practice the European unions cap-and-trade practice. State intervention is a major problem. Basicly those are the governments getting the possibility to mandate end-of-pipe technologies in order to help the reduction of the cost of the emission reduction processes. Nevertheless, this method has a lack of information towards the states, and additionally the intake of new technologies can be super expensive for firms and enterprises. Moreover, many times the state enforces the adaption of low-cost emission technologies even if those are found too pricy by the enterprises. As the price of the shift to the new technologies, it would be more pricy than profitable, the firms are counting competitveness and would deny to use the technologies. However, in this case innovation is found much more important, than competitiveness for the state.  [15]   1.4. Conclusion à ¢Ã¢â€š ¬Ã… ¾Unfortunately, the European emissions trading scheme designed to help member states meet their commitments turned out to be a washout.  [16]   So far, it is clear that the European Union is exporting Co2 and greenhouse gases and importing land and water. We are consuming much more, than what we have and this results in mass pollution of the entire environment. Most possibly we are already late in order to prevent the effects of climate-change within the European Union, and emission trading policies, especially in this form, where member states can easily trade their emission rights will not be enough effective. There shouldnt be hesitation within the decision making forums about the reform of the European Unions cap-and-trade policy, as in this form it is untenable. à ¶sszefoglalà ¡s a problà ©mà ¡knak christina kritikusan, sajà ¡t và ©lemà ©ny indoklà ¡ssal

Pestle analysis by pepsico. Essay

PepsiCo is the largest selling beverage the world over, of course after its arch rival Coca Cola. It accounts for a 37% share of the global beverage market, and therefore they need to understand each and every country’s market in order to stay in line with their PESTLE situations. Pepsi is a big brand, currently holds the 23rd place in the Interbrands report of the World’s Leading Brands. Their advertisements feature major celebrities and athletes like David Beckham, Robbie Williams, Britney Spears, and Michael Jackson etc. Their market reach is also very diverse, as they’re present in almost every country from the US to New Zealand. Their PESTLE analysis is given below: Political: Pepsi is a non-alcoholic beverage and is therefore regulated by the FDA. So, they’re supposed to maintain a firm standard of the laws set out by the FDA with consistency. Also, many different markets across the world have different set of regulations that are either relaxed or are either stringent. There is competitive pricing by Pepsi’s competitors and that is one factor that Pepsi has to keep in mind at all times. The political scenario also matters greatly as there can be some civil unrest in certain markets or due to inflation the sales of the product can fall. Most importantly, cross border situations are starkly different therefore Pepsi has to stay in line with all those policies and changes so that they can adapt to all those changes accordingly. Economic: As the recent economic downturn has plagued the economy, companies had to restructure their sales and marketing campaigns greatly. Also, with diminishing profits they had to undergo downsizing internally and re-think upon how to penetrate the market. Economic conditions have the highest influence on a business, regardless of what trade it is in. Though, in Pepsi’s favor, the economic downturn that started in 2008 resulted in increased sales of its beverages mainly as people were being laid off from jobs, they were spending time with friends and family or at home. Social: Social factors greatly impact Pepsi, as it’s a non-alcoholic beverage it has to remain in line with the strict and stark differences of cultures the world over. Also, Pepsi has to communicate its image as a global brand so that the people can associate it with themselves as something that connects the world together. Usually, the social implications are seen in marketing campaigns for example certain countries have religious festivals, so Pepsi has to keep in line with all those festivals in order to understand the psyche of their market and how they can cash upon the opportunity. Technological: With the advent of the new age in technology, companies have completely integrated themselves with all the recent changes that have taken place. To mention a recent trend that has greatly picked up and something that almost every business is turning toward is Social Media. The social media explosion has allowed for increasingly interactive engagement with the consumers with real time results so Pepsi has to stay ahead of all the developments that take place with keeping in view how the youth of today utilizes technology for their benefit and how can Pepsi reach them in order to keep on increasing brand recall and brand engagement. Legal: There can be many legal implications upon the beverage industry. I would cite one very famous incident took place in India, where Pepsi was accused of using contaminated water, given a lab test that was done upon the water flowing into the Pepsi factory that was located nearby an industrial estate. A massive recall was issued for the products from shelves and then the product was tested costing the company many billions of dollars upon the tests as India is a very major market. Environmental: These factors can affect Pepsi, but not immensely alter its trade and profit generation as these factors affect agri-businesses much more directly.

Commitment and Dedication

As a Boy Scout what commitment and dedication mean to me is being completely ready to carry out my responsibilities as a Boy Scout. I will do my very best to uphold my duties and responsibilities in the best way that I can, and I will always be willing to help others, if a situation arises. I will always appreciate the experience and knowledge that I have gained while being a Boy Scout and I will also encourage others to join.I will remain dedicated and committed to my title and I will do my very best to use my knowledge for the good of others. Whenever I am in a situation where I must choose between my Boy Scout meetings or play, I will do my very best to attend the meetings. I will remain a loyal Boy Scout who values the time he has spent in the Boy Scouts and will strive to demonstrate the skills that I have learned. I will also always remember to respect my fellow Boy Scouts and remain a good friend to them.I will always be committed to helping them and be fully dedicated as a Bo y Scout. My dedication and commitment will always remain with me, for I am grateful for the ones who trained me to be knowledgeable in so many areas and I will always appreciate them for the dedication and commitment that they gave to me. Dedication and commitment are two things that the Boy Scouts have taught me that I will keep with me and appreciate for the rest of my life.

Banning Cell Phones in Schools Essay - 580 Words

The usage of cell phones is increasing dramatically in the world today, especially among the student body. The principal’s idea of banning cell phones from the school has to be one of the best ideas yet. Why does a student even need to use a cell phone during school? The usage of cell phones in a school or a business can only lead to disaster. Students could be texting friends the answers on tests, talking on the phone and not paying attention and miss an announcement, or they might talk or text and hurt another individual verbally or physically. Undoubtedly a student does not need a cell phone in school. Students often tell friends the answers on tests, if they have a cell phone in school with just one push of a button they can†¦show more content†¦Students are in school for their education, cell phones will distract them from their education. In addition, students could be talking on the phone and miss an important announcement. A student not paying attention du e to a cell phone call may miss an announcement about an activity they participate in being cancelled. They may possibly stay after school for the activity and miss their bus, which causes their parents to have to come pick them up, wasting their car’s gas, and time. A student could also miss an announcement about a class being in a separate room. The student may go tot the original classroom and then have to go to the office to get a pass and inquire where the class is. It will be a distraction to the teacher and the other students if the individual comes into the class behind schedule. Finally, a student could end up hurting another individual both verbally and physically. When a student is talking or texting another student gossip, the student that is the victim of the gossip will be hurt emotionally. The victim may quit school or commit suicide just because gossip was spread around about him or her. Bullying does go on without the use of a cell phone, but it is so much easier to send a text to everyone in the school to hurt the individual. A student may also hurt another student physically because they may be talking or texting and not paying attention. This student could run intoShow MoreRelatedEssay on Banning Cell Phones in School507 Words   |  3 PagesRecently, the principal of my school has banned the use of cell phones during school hours. I agree with this policy because students could use their cell phones to cheat on tests, quizzes, or any other independent work. Another reason that I agree with this policy is, the students won’t be paying attention to the teacher if they are texting somebody else. The final reason is, cell phones are a distraction to other students who are trying to learn. Cells phones can be a huge problem later in lifeRead MoreEssay on Banning Cell Phones in School505 Words   |  3 Pagesdevice. 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You start talking and get deeply involved in the conversation. Before you know it, you just ran a red light and get side swiped by a school bus. Your life is now upside down. Finally, you are able to pull yourself out of your new Escalade with no injury. However, a few of the students have been injured and one killed. Now you have to live with that for the rest of your life. This is a prime example of cell phone distraction. Therefore, all cell phone usage