12 March 2009

Climate change: the problem

The problem:
If a product is made in China, by a company based in Singapore, using Australian coal, for a company in the UK, and exported to end users in the US, then which country should 'own' the emissions?". Oliver Tickell, 2008
The solution? Subordinate policy to the desired outcome: climate stability. Not to the wish to attribute emissions to particular countries. Nor even to the wish to cut back emissions. Our politicians are too adept at gaming whatever will be agreed, while climate change is simply too complex to address with one policy, which might well not be effective or efficient.

The solution in more detail? Issue Climate Stability Bonds, which will transfer the burden of assessing the cost of stabilising the world's climate to investors who have an incentive to stay abreast of our rapidly expanding scientific knowledge and technology. The bonds will reward the achievement of the climate stability goal without prejudging how that shall be achieved. For more details, see here.

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