Cap and Trade won’t work without enforceable caps.
Voluntary commitments won’t work if there is no way of compelling the countries to adhere to those commitments.
Then there is Plan C, “Stiglitz’s plan is to set a single, global price for carbon dioxide, the most important greenhouse gas. The idea is to make it so expensive to use carbon that consumers and businesses voluntarily use less of it. Countries could raise the price of carbon either with a tax or with a domestic cap-and-trade system, Stiglitz says. In his vision, if a country didn’t set its carbon price high enough, hoping to gain a pricing advantage, other countries would be allowed to charge tariffs on its exports. He would throw in a green fund to compensate hard-hit poor countries.”
For the full article in Bloomberg Business go here