Question

Reducing carbon emissions is an important step in combating climate change. Give an example of a command and control approach to reducing carbon emissions and another example of a more market based approach to reducing carbon emissions. Which policy do you think will be more successful? Explain briefly.

Answer 1

Answer -

1 - Command and control policy will be formulated by the government. This can be done by forcing the use of the use of pollution control technologies in the industries and setting up the limits of the carbon emissions. These measure would help reduce the level of the carbon emission.

2 - The market based strategy will not use much of the government restriction.

If the tax is imposed on the products , for the production of whom , carbon is emitted , the consumers will directly adjust the price in the cost of the product. Also the increased cost of carbon reduction need to be reflected in the price of the product.

According to me , command and control policy will be more effective. It will make a pressure upon industries to take adequate measures to reduce pollution . It will be more effective . Market based strategy can prove to be a lose step because of the recovery of the costs from consumers. The command and control steps , if strictly applied , will show the quicker improvment.