http://www.fpif.org/fpiftxt/3585
Foreign Policy In Focus

Beyond Kyoto

Ruth Greenspan Bell | October 10, 2006

Editor: John Feffer, IRC


Foreign Policy In Focus
www.fpif.org

Hoff Stauffer should not be so apologetic and tenuous in his proposal 
for performance standards. If and when the world decides to become 
serious and really do something about global warming (and the 
considerable lag times normally encountered between decision and 
action suggest we are fast running out of time), I doubt the Kyoto 
Protocol will have anything to do with what emerges. Kyoto and its 
flexible mechanisms may represent an idealized vision of how 
pollution might be controlled in a perfect world, but the real world 
is far from meeting those conditions. The question we should be 
asking is: why would the world want to experiment with untried theory 
for this critical and time-sensitive problem?

As Stauffer notes, there is almost no experience with global cap and 
trade and no reason to believe it can work. Analysis coming out of 
India suggests that the Kyoto Protocol's Clean Development Mechanism 
(CDM) is already subject to manipulation and it is not possible to be 
confident that genuine carbon reductions are being achieved. There is 
some experience with taxation, but its success has been very 
site-specific: consider the fate of the gasoline tax in the United 
States compared with European efforts. No one promoting either the 
emission-trading or the carbon-tax solution has convincing answers to 
such concerns. Of course, it is indisputable that putting a price on 
something helps control behavior-look at what has happened as gas 
prices have shot up in the United States over the past year-but few 
domestic elected officials are brave enough to vote for a gas tax. 
Only a very grave sense of urgency might reverse this impasse.

The climate debate has been dominated thus far by a single-minded 
focus on efficiency as the most important criteria for a remedial 
program. No one disputes that money and resources should not be 
wasted, but the focus should be efficacy, experience, and 
practicality, with the hope that, when we find a system that can 
really work, we will be as efficient as possible under the 
circumstances. Efficiency has never been the sole driver of any 
environmental requirement. We need to get beyond arguing for and 
against market instruments and the spectacularly ill-labeled "command 
and control" and focus instead on devising a whole menu of solutions, 
flexibly keeping what works and abandoning what does not.

It is true that very little environmental regulation-neither market 
instruments nor performance standards-has worked in the developing 
world and many parts of the countries in economic and political 
transition. A serious effort would employ social science techniques 
to understand what approaches and arguments would be genuinely 
persuasive and effective in specific places like India and China, 
rather than continuing to have debates about theory. There is no 
reason why the architecture for addressing climate has to be 
consistent everywhere-only the commitment to making reductions and 
carrying through on that commitment need be part of a global plan.

Stauffer says it would be relatively easy to determine whether a coal 
plant has the required control technology. Experience shows that 
turn-key industrial plants are being built in China, but the 
operators save on running costs by turning off the pollution control 
equipment or only using it at their convenience. In Russia, we saw 
plants with the requisite air pollution control equipment but no one 
cleaned the bag house and thus the discharge was unabated. These are 
among the reasons why I am dubious about a faith in technology 
without at the same time changing the mind-sets of the people who run 
it. Incentives are complex things and they are different in different 
societies.

Stauffer is right to focus on new sources, particularly power plants. 
In the United States, industry has announced that approximately 20 
applications covering 28 units could be filed with the Nuclear 
Regulatory Commission in late 2007 and 2008.

But at the same time, utilities are planning many more coal-fired 
plants and doing little or nothing about conservation. In China, it 
is said that unrestrained coal-fired plants are going on line at the 
rate of one a month. An idea to address the U.S. problem would be a 
dual program to educate state utility commissioners (who mostly 
consider the short-term cost to the rate payers) and to fund 
rate-proceeding interventions state by state to advocate for 
conservation and sequestration.

Ruth Greenspan Bell is director of the International Institutional 
Development and Environmental Assistance program at Resources for the 
Future in Washington, DC.

For More Information

A New Standard for Preventing Global Warming
Hoff Stauffer | October 4, 2006
http://www.fpif.org/fpiftxt/3562

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