Adam Smith Climate Change

Distribution and Rights

Question One:

Cap-and trade systems are methods of distributing permits for the purpose of reducing pollution. In the article “Adam Smith meets Climate Change,” the authors Ian Ayres and Doug Kysar describe three different proposed methods in which a cap-and-trade system for greenhouse gas emission permits can be distributed. The first of these proposed methods is the system that would give the most permits to the countries that have historically emitted the most GHG (green house gasses). In general, this method would enable more wealthy and developed countries to continue having the large emission rates. In turn, proposal one would prevent smaller, less developed countries from growing and will position them in a disadvantage. The second proposed method would involve giving the most permits to the countries with the most people. This method would allow larger populated countries like India and China to have the most permits. On the other hand, less populated countries like the United States would get less permits which may make it impossible to continue the growth that it has been able to achieve in the past. The third proposed method is a combonation of two different permits; “regular” and “justice” permits. “Regular” permits would be given to countries based on historically used green house gas emissions. Additional “justice” permits would be given based on some type of formula that involves previous emission rates and previous contributions to climate change. (1) Agreeing on one proposed method of reducing GHG has been a great challenge due to the different effects each method will have. Each country wants what is best for itself, but if countries looked at the situation of pollution without their own interests involved, they might want to take a utilitarian approach.

Utilitarianism is any theory that advocates the selection of that action or policy that maximizes benefits. It is believed to be socially responsible for...