Question

Question #8: Briefly explain how the buying and selling of pollution rights has lower the cost to global society in their endeavor to reduce global warming? Nuestion #9:

Answer 1

Emission trading mechanism allow parties to the Kyoto protocol to buy Kyoto unit emission permits for greenhouse gases from other countries to help meet their domestic emission reduction targets.
mission trading is an exchange of credits between nation and design to reduce emission of carbon dioxide. Emission trading is also referred to as carbon emission trading carbon emission trading accounts for most emission trading.

Benefit of carbon trading or emission trading --
when countries use fossil fuels and produce carbon dioxide they do not pay for the implications of burning fossil fuels directly. There are some costs that incur,like the price of the fuel itself, but there are other costs not included in the price of the fuel. These are known as externalities. In the case of fossil fuel usage often these externalities are negative externalities,meaning that the consumption of the good has negative effect on third parties.
These externalities include health cost like the the contribution that burning fossil fuels make to heart disease cancer stroke and lung disease and environmental cost, like environmental degradation pollution climate change and global warming.interesting Li research has found that often the burden of climate change most directly affect countries with the lowest greenhouse emission.so if the country is going to burn fossil fuels and produce these negative externalities the thinking is that they should pay for them.

the goal of this is that companies in the aggregate do not exceed a base line level of pollution and provide financial incentive for companies to pollute less. The carbonated also refers to the ability of individual companies to trade polluting rights through a regulatory system knows as cap and trade.companies that pollute less can sale there unused pollution write to companies that pollute more.