The Copenhagen Dilemma: Carbon Emissions and Economic Development

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The Copenhagen Dilemma: Carbon Emissions and Economic Development

Introduction: The Problem

There is still uncertainty about the impact of climate change upon the economies of the world, as cost estimations differ considerably. Similarly, there are wide differences in what the costs of reducing the emission of greenhouse gases would be (Nordhaus, 2007; Weitzman, 2007). Yet, a consensus among the major governments of the world appears to be forthcoming that something has to be done to reduce the economic risks from large scale climate change with raising see levels and more of floodings, ocean acidity as well as aridity and drought. If one agrees with the Stern 2006 Report that climate change induced by the emission of greenhouse gases constitutes the major market failure of our time, then it is appropriate to search for an international regime to counteract the steady rise in emissions.

It is a well-known fact that total emissions of greenhouse gases have increased sharply over the last twenty years. In 1990 21.2 billion metric tons were released, which figure had increased to 28 in year ...

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