Global Warming: Evidence and Remedies Term Paper

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14). While command-based incentives were more favored in the U.S. during the 1970s, the increasing shift to view market-based incentives in a more positive light caused a tendency to stress incentives in the Reagan era and beyond -- just when the warming of the earth's atmosphere began to increase.

Today, both incentives continue to be used. One example of a control mechanism used to prevent global warming is fuel emissions caps. However, within the U.S. these have proven to be extremely unpopular. California, for example, has one of the most stringent and ambitious goals to regulate emissions but in November voters will be able to vote to suspend these goals, in a supposed effort to increase jobs if Proposition 23 is passed (Nagourney 2010). Incentive-based regulations are familiar to most consumers in the form of tax incentives to buy Energy Star-rated products, tax credits for fuel-conserving home improvements such as storm windows and doors, and special express lanes for hybrid cars. Clearly, incentive-based strategies are more popular, given that they have benefits for the consumer in the short-term as well as the long-term. Incentive-based strategies also tend to generate more positive good will about environmentalism in the public.

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But are they more effective? At present, the evidence is mixed regarding both strategies, although incentives continue to be more favored -- the Kyoto treaty created a 'cap and trade' program to increase incentives to meet emissions goals by enabling nations that overshot their reduction benchmarks to 'sell' credits to more polluting signature nations.

The ideal is to incentivize technological innovations that will enable nations to meet emissions standards. Stimulating the growth of new technology is always the ultimate aim of environmental legislation, given that this means that there is no longer an incentive to repeal caps on emissions standards, given that more efficient technology exists to meet them effortlessly. But until new technology is found, some form of control mechanisms must used to minimize the impact of current technology, in combination with incentive schemes to make an environmentally-friendly lifestyle more palatable. When environmentally-friendly technology requires a large, initial expense on the part of the consumer -- such as fuel-efficient vehicles or home redesign -- incentives will make lifestyle changes more attractive, and also generate more positive goodwill about environmentalism, so voters are less tempted to pass measures such as Proposition 23......

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