Question

What is the link between greenhouse gas emissions and growth? What is the expected effect on growth from emissions reduction? Why is international burden-sharing of greenhouse gas emissions reduction a contentious problem?

Short answer

Greenhouse gas emissions and growth generally share a positive relationship. Due to a reduction in emissions, growth will decrease but can be increased due to technological improvement. A contentious problem emerges for reducing greenhouse gas emissions because the prosperous economies do not want to sacrifice their original pathway towards growth.

Step-by-step solution

Explanation of the relationship between greenhouse gas emissions and growth

It has been found that the economies where the growth is relatively high often tend to emit a tremendous amount of greenhouse gases.It is because whenever production takes place, greenhouse gases are emitted, and at the same time, due to an increase in the production level, growth takes place.

Expected effect of growth due to reduction in emissions

If emissions are advised to be reduced, the companies will limit the production of those products whose production process emits greenhouse gases. Thus, the expected effect upon growth will be negative. The expected effect upon growth can be positive if improved technologies are adopted to reduce emissions without hampering the production level.

Reason for the rise of contentious problem regarding sharing of the burden of reducing greenhouse gases

A few decades ago, there were no advanced technologies for which manufacturing activities emitted a tremendous amount of greenhouse gases. The developed economies emitted a maximum of them as the poor economies were mainly dependent on agricultural activities.

Currently, the poor economies are dependent on the manufacturing sector, for which greenhouse gas emissions are increasing, but the strong economies create massive emissions.

To reduce the emissions, taxes are charged where the strong economies pay a minimum tax for creating emissions instead of a high tax. As a result, the poor economies have to bear the burden, resulting in stunted growth, thereby creating a contentious problem.