Benefits of the global carbon market

The greatest benefit of creating a global carbon market is that it can reduce the carbon emission effectively. This method can achieve a much better outcome than depend on individual country’s direct influence on reducing the carbon dioxide emission. Countries can seek financial subsidy from selling carbon emission quota if they have extra ones. On the other hand, most of the developed countries need more emission quota due to the out of date infrastructures and large footprint on average, which caused by the luxury living style. When we put poor countries together with developed countries, it is doubtless that, on average, those developed countries have much higher carbon emission on average. (Tavoni, 5394)

(http://www.csrplus.co.uk/blog/?p=3175)

The motivation of installing cleaner technology will be larger compared with no economic benefit, before the appearing of global carbon market. Under the global carbon market, even though it cost an enormous amount of money and also time, it is still worthwhile for developed countries to do so. This will help to increase the rate of updating existing infrastructures in developed countries, although the cost is remarkably high. If the developed countries do not replace the past and high energy concentrated infrastructures by new ones, penalty may be extremely high. The result is that they will have to pay for the penalty every year. The global market can provide an opportunity to balance out the carbon emission globally. At the same time, maintain a theoretical and rational emission level to promote human save the earth.

On the other hand, the carbon cycle will be fully open to all without any regulation, which may lead to the tragedy of maximum exploitation. When we look at the carbon market, a protocol like Kyoto Protocol is particularly valuable to the entire global economy chain. The protocol now imposes restrictions on most countries that are in the protocol; this will limit some expansion of the factories and similar industrial developments. At that time, not only it is extremely difficult to control the global carbon emission, but also prevent the situation become even worse. Giving a subsidy for countries that contribute lowering carbon emission and posing penalties on the ones that do not follow the rules, it works much better than only depend on consciousness especially when it applies to poor countries.

Tavoni, Massimo, Brent Sohngen, and Valentina Bosetti. "Forestry and the Carbon Market Response to Stabilize Climate." Energy Policy 35.11 (2007): 5346-353. Print.