Weighing the Options

On the side bar, you'll see under "In the News" that one of the articles is titled "One Answer to Global Warming: A New Tax." This article discusses the merits and shortcomings of a possible carbon tax. Some noteworthy points that the article discusses are that A, while a carbon tax would by itself raise taxes for the typical American who drives a car, revenue raised from the tax could be used to reduce other taxes so that the total tax burden remains more or less the same. B, a carbon tax would force Americans to consider ways in which they can reduce the amount of fuel they use on a regular basis, thereby making permanent changes to their lifestyle.

The article also mentions cap-and-trade systems as an alternative to a carbon tax. Also known as emissions trading, a cap-and-trade system is one in which total carbon emissions are limited, or "capped," but companies may buy and sell emissions allowances to suit their needs (that's where the trade comes in). The video above addresses the distinctions between cap-and-trade and carbon taxes.

The video, along with the article, provides a multifaceted look at the government's and businesses' responses to global warming. While nothing has been set in stone yet, discussion is the first step towards progress.

The Political Link Revisited

I rewatched the video I posted two posts ago today, and it has confirmed my belief that the government needs to take action against global warming. The upcoming presidential election provides the perfect opportunity to spotlight global warming and the dangers it poses. The current administration has taken an extremely conservative approach to environmental issues, choosing to forgo stringent environmental policies, citing economic change as one of their concerns. What the government does not realize is that new environmental policies have the potential to inject the economy with some much-needed vitality.

Europe has been leading the globe in its environmental efforts, and European companies have proven that they are not adverse to environmental overhaul. Many of the websites I have visited and articles I have read confirm that Europe now poses a serious threat to American businesses. American consumers are seeking new products and services that are more environmentally friendly, and they want the companies with which they do business to be environmentally conscious in their means of production as well. I found an organization, the Green Power Market Development Group, whose website link I have included to the side. The group helps businesses develop "greener" technology to reduce their effect on the environment. Programs like these are becoming more attractive to both businesses and consumers and can help push the American economy in a new direction.

Unfortunately, businesses don't like changing their policies when their profits are stable. If the government can recognize the benefits of stricter environmental policies (similar to the ones in effect in Europe), businesses will need to change their ways, benefiting both the environment and themselves.

The government is in the best position to initiate environmental change. With the November election just around the corner, the question that remains to be answered is whether or not America will voice its concern about global warming and its economic consequences.

The Heat is On

The more I research my topic of climate change and the economics underlying it, the more I've begun to realize the economic implications of global warming. Our changing environment demands not only a change in attitude and a change in lifestyle, but a change in the way our global and domestic business markets operate. With the advent of the carbon-conscious lifestyle, international businesses will need to alter the way they cater to consumers. Companies will have to find ways to go green not only to environmentally savvy customers but to cut down on their own costs as well. It will be interesting to see how certain brands will react, if at all, to this increasingly eco-friendly economic market. The next few years will be pivotal for businesses worldwide as they assess both the economic and environmental climate and decide how to respond.

Political Incompetence, and What We Can Do

I found a video on Youtube of Al Gore speaking to Larry King on the topic of global warming. The interview's over a year old, but the discussion is still pertinent.

The Chinese character for "crisis" is a combination of the words "danger" and "opportunity." Gore sees the climate crisis as an opportunity for the citizens of the US to come together to take a stand against global warming and compel our politicians to do the same. In America, our political viewpoints are so scattered and diverse, and the friction between political parties so great, that we cannot really hope to be a united or truly effective force in the environmental debate.

A Road Map

Recently, the world's been in an uproar over the climate. The United States and Europe have acted differently in light of these recent environmental concerns and controversies. Their approaches to the issue of global warming can be attributed to the economic goals and perspectives of the two regions. Differing political and cultural values in the U.S. and Europe are responsible for the different economic motives behind the two regions' actions in reponse to global warming.