Research Articles Base: Kyoto Protocol And The Southeast Asian Economic Development

Kyoto Protocol and the Southeast Asian Economic Development

Kyoto Protocol and the Southeast Asian Economic Development   Introduction             The global dimension of economic and environmental problems stresses the need of an internationally linked economic and environmental policy. From the political standpoint, the task seems to be huge and there are many skeptical voices whether the big political bargaining process could ever converge.             In the countries like the Southeast Asia or the developing countries, the ratification and entry-into-force of the Kyoto protocol would have considerably economic effects. However the question on what and how would it affect the economic sphere of the country would largely depend on the domestic policy measures chosen by countries to meet its obligations under the protocol. Its effects hereby are indeterminate during the ratification process.             The issue of Kyoto Protocol is quite controversial in some of its aspects. It had became controversial and trivial when there was differences of principles emerged during the convention in which some of the countries which were invited to participate expressed their sentiments on the way it should be implemented. The issue raised on the query about the participating countries that would be involved for its implementation.             Aside from the noble desire of the Kyoto Protocol to somehow minimize the emissions produced that significantly affect the environment through global warming and greenhouse effect. One of the considerations in which participating countries were thinking was its economic effect. It was this issue which was not resolved between participating countries from developing nations and the rich ones.             Now, the reason why there was reservation on the part of the developing countries to participate was the need of the rich countries to lead the advocacy and should be the participants in this endeavor since the most of past emissions of greenhouse gases that are now accumulated in the atmosphere came from the industrialized countries. Developing countries reasoned out that they should not have to sacrifice their economic development or otherwise pay the economic price, for a problem that the industrialized countries created. Yet, if we look the issue in its global perspective, we can say that it would be impossible to implement and get rid of the environmental trouble without the participation of developing countries since the issue is global and which needs a global attention. Beside, the industrialized countries cannot address climate change without cooperation by developing countries since their emissions are increasingly most rapidly and soon passes those from the rich countries (Frankel, 2004).             It should be remember that some of developing countries like India and China are expected to be part of agents that would contribute for the emissions increase in coming decades.             However, the issue that I would like to resolve is not on who will take an active participation in addressing the problem of greenhouse effect rather the effect of this agreement on the economy of the Southeast Asian countries. There are various studies that contend the beneficial effect of Kyoto to the economic development of the Asian countries once the protocol will be ratified and implemented.             In the work of Frankel, he argued that the developing countries’ participation is crucial because it would permit relatively low-cost reductions in emissions in the South in place of high-cost reductions in the North. Yet, this is a rich country perspective. Representatives of the developing countries contend that what is the main duty of the state are its own citizens, meaning the priority should be uplifting the economic standards of living. Moreover, it would not be practical on the part of the developing countries to implement the agreement for its economic cost, while rich countries can able to implement and manage to activate the agreement since they have enough resources and can afford to make some sacrifices.             In analyzing the effects of climate change in relation to the Kyoto Protocol, there are at least three important elements of difficulties. First, the ultimate treaty still has elements of uncertainties. Second, the available models to analyze the short-term costs and benefits are inherently limited. Third, putting of a single monetary figure on the long-term benefits of mitigation is highly implausible. These stated difficulties contribute to the issue on the economic development of the Southeast Asian countries even though, econometric models are to be employed in understanding its effect is not enough in foreseeing if it will help Southeast Asia’s economic growth and development.             On the other hand, although there are considerable options theories and models which can be used to identify and measure the possibility of Kyoto’s contribution to the economic development of an Asian country, it still implausible to delegate the time frame on the extent of the development, whether it is a long-term or short-tem development.             It cannot be deny the fact that greenhouse effect causes the global warming phenomenon, and the noble act of the Kyoto Protocol would somehow alleviate the ailing environment, yet, to respond in this advocacy is the consequence a Southeast Asian country should take.             Although representative of the developing countries argued of the negative economic effect of the protocol, it does not necessarily reflect the whole of the Southeast Asian countries. Meaning, some developing countries may have such kind of reservation towards participating in the agreement, yet not all of the developing member countries are adhering to such arguments. In fact, there are countries which are actively participating in the programs of the Kyoto protocol. One of them is the Philippines.             The Philippines under the agreement tried to create programs which are in adherence to the law and regulations of the protocol. The creation of bio-fuel gas and other natural gas like electricity is being promoted gradually in the Philippines. This undertaking was made to minimize the emission of carbon dioxide and the amount of greenhouse effect that contributed to the global warming and climate change phenomena.             Moreover, although there are economic effects, the gradual implementation of such agreement in the Philippine context has seen to have no great economic effect unlike to what other developing countries have been claiming.             So now, is Kyoto Protocol would have an adverse economic effect to the Southeast Asian countries?             My answer is both yes and no.             Yes, because it would up to the country implementing the agreement. No, because still it would also be base on the domestic economic structure of a country. The initiatives are on the state’s authorities whether to look for a suitable alternative and solution to the ailing problems aside from taking the agreement or taking the agreement while looking for a suitable alternative that would maintain the stability and economic growth of the country.             The Kyoto protocol cannot inherently give any suggestion or recommendation regarding how to implement its rules without an adverse effect to the economic growth and development. The action will take into place by the authorities themselves.             Whether we are in the developing countries or rich countries, the problem on climate change is a global one, which means a global action should also take into place despite of whatever the status of our country is, so long as we have the creativity and the right mind to look for alternative, we can be able to come into an agreement of taking the Kyoto protocol.       Credit:ivythesis.typepad.com

Kyoto Protocol and the Southeast Asian Economic Development

Kyoto Protocol and the Southeast Asian Economic Development Introduction The global dimension of economic and environme...

KYOTO PROTOCOL

The Kyoto Protocol   Introduction             Today, countries’ policymakers are starting to respond sincerely on the environmental changes happening. They are proposing policies that aim to reduce greenhouse gas emissions and help society adapt to the impending impacts triggered by past emissions. As science continues to bring clarity to present and future global climate change, leaders of different countries are trying to make a global response wherein every country will have to participate.             The range of climatic changes will have real effects on the natural environment plus to human-made infrastructure and their ability to contribute to economic activity and quality of life. The effects of these are varied across regions, countries, and sectors of economy, leaving future governments, citizens, and the private sector to face the full spectrum of direct and indirect costs accrued from increasing environmental damage and disruption.             The indirect effects of climate change have not been clearly quantified, but considered to be substantial. Higher prices for products are due to the prices of raw materials, transport, taxes, energy, and insurance increase. These are few of many forms of the effects brought about by climate change.             Since scientific evidence is foreseeing that climate change will directly or indirectly affect all economic sectors and regions of the country. This means, the need of a “national policy for immediate action to mitigate emissions coupled with efforts to adapt to unavoidable impact will significantly reduce the overall costs of continued climate change” (, 2007). Moreover, there are global or international policies in which being designed to lessen the greenhouse gas emissions that caused climate change. International Trade: Kyoto Protocol One of the global program policies which is pursued to be a standard policy of the industrialized countries to curb greenhouse emissions is the Kyoto Protocol. Undoubtedly, Kyoto Protocol is a significant step for the reduction of greenhouse gases emission, yet developing countries are spared to the responsibility for emission reduction due to its considerable effect in their economy. As (2000) pointed out that “with only partial participation by countries to the framework of greenhouse gas emission falls in Annex I countries, it may rises in the other countries. As a result, the worldwide level may rise. Moreover, the partial participation may affect international trade in goods and foreign direct investment”. In doing an analysis on the effect of global warming to the international trade in line with the regulation and policy of Kyoto Protocol, the need to examine emission quota, emission tax, and emission standard are important. What is most significant in dealing with the effects of GHG emission issue is the countries’ choice of environmental regulatory policies that affects either the world abatement performance or a country’s trade structure. In       analysis, a country’s strategic choice of emission controls greatly affects not only the volume of the world total greenhouse gas emission volume affect but also each country’s welfare. In the international trade, if international commodity trade is free, then a country’s choice of emission controls over emission quotas, emission taxes and emission standards critically affects stability of the resulting trade and production structure. Following this line of thought, in using the tariff-quota equivalence theorem in international trade,       found two important results. First, when a government tries to replicate the production equilibrium in free trade under the emission quota with the equivalent emission taxes, then the equilibrium becomes unstable. Second, when a government enforces the equivalent emission standards achieving the emission per unit of output at the emission-quota equilibrium, then only completely specialization in the emission-extensive industry is possible at the resulting equilibrium insofar as the emission intensities differ between the industries and there are no emission intensity reversals.  In Kyoto mechanism what is important in its emission scheme is the promotion of free international emissions trading. This means there is a force of trying to replace the role of the emission tax with the emission permit price in the world emissions trading market. This still holds the implied idea that creation of international emissions trading market may make the world trade and industrial structure very volatile against change in the world economic environment. In allowing the international emissions trading as a scheme, the assigned units of emissions moves around the world and affects the production structure of each country participating in the Kyoto mechanism.     Globalization, Global Warming and Southeast Asia             In the current environmental status of the world, various studies concurred that there are various factors involved that affects the environment. Some of those factors which primarily affect the environment and international trade are globalization and global warming. It has been argued by scholars that the cause of rapid changes in the environment is globalization. The rise of new infrastructures, together with, the deluge of millions of industries all over the world, ranging from oil and gas, technology, electricity, and other industries are in great magnitude of causing climate change. The combustion of fossil fuels and other gases from energy industries affect much in the amount of GHG emissions that cause climate change.             Since the issue of climate change is global, the response must also be global. The participation of all countries like the industrialized and developing ones is needed. Yet, in Kyoto Protocol, developing countries are exempted while the industrialized and rich countries should participate. Nevertheless, even though, developing countries like in Southeast Asia are not obliged to be active participants in Kyoto mechanism, it has still an impact to the international trade operations and the continuing process of globalization.             One of the most significant features of the effects of global warming to international trade in Southeast Asia if considered to be members of the Kyoto mechanism is the importation and exportation of good, services, and products. Considerably, the countries like Japan, China, Korea, India and others which considered industrialized can affect the exchange or trading of good and products which have something to do with the environment concerns. In this sense, the minimization of products for exportation and importation of one region to another can have an adverse affect to the economy. However, not all countries of Southeast Asia are members of the Kyoto mechanism; some like developing countries may not be affected. However, if a developing countries belong to a specific region of trading and one of the countries in a region is implementing the Kyoto mechanism, it might have affect the trading of products and in turn will lessen their economic income.             On the other hand, the effects of globalization in relation to global warming are significant. The globalization brought a great impact on the changes happening within the environmental spectrum. The Southeast Asia is still undergoing and now developing, trying to meet the standards of the global networks of regions and countries. The economy is the most fragile entity to which globalization can influence and at the same time an agent for development and globalization of a region or country. The globalization of Southeast Asia contributes also to the increasing problem on global warming. Most of the countries in this region are getting more technological and industrial which are substantially produce emissions of greenhouse gases that affect the environment.             Hence, the international trade and globalization can have a tremendous or light impact to Southeast Asian countries depending whether they are involved to certain policies or are exempted from it. But what is most important is that each should take initiative to counter-attack the adverse effect of global warming. References:   Credit:ivythesis.typepad.com

KYOTO PROTOCOL

The Kyoto Protocol Introduction Today, countries’ policymakers are starting to respond sincerely on the environmental ch...