Environmental issues don't stop at borders. They're global problems that need global solutions. From air pollution to climate change, countries must work together to tackle these challenges that affect us all.

But cooperation isn't easy. Rich and poor nations often have different priorities. Some countries might try to freeload off others' efforts. Despite these hurdles, international agreements and market-based approaches offer hope for addressing our shared environmental concerns.

International Environmental Issues

International Externalities

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  • International occur when one country's actions impact the environment or welfare of another country
    • Negative externalities harm the environment or welfare of another country (transboundary air or water pollution)
    • Positive externalities benefit the environment or welfare of another country (preserving or carbon sequestration in forests)
  • Environmental impacts include degradation of shared natural resources (oceans, atmosphere, biodiversity), increased global greenhouse gas emissions contributing to climate change, and loss of and environmental amenities

Cooperation Challenges

  • High-income nations may prioritize environmental protection, while low-income nations may prioritize economic development
    • Low-income nations often lack financial and technological resources to address environmental issues
  • High-income nations have historically contributed more to global environmental problems due to longer industrialization
    • Low-income nations may argue high-income nations should bear greater responsibility for addressing these issues
  • Costs of addressing environmental issues may fall disproportionately on low-income nations, while benefits accrue more to high-income nations, creating a sense of injustice and reluctance to cooperate
  • Free-rider problem: some countries may be tempted to benefit from others' environmental actions without contributing their fair share, undermining the effectiveness of international environmental agreements

Mitigation Strategies

  • International agreements
    1. Multilateral environmental agreements (MEAs) set common goals and standards for environmental protection ( on climate change)
    2. Trade agreements incorporate environmental provisions and incentives (environmental chapters in free trade agreements)
    3. Challenges include ensuring participation, compliance, and enforcement of agreements
  • Market-based approaches
    1. Carbon pricing puts a price on greenhouse gas emissions through carbon taxes or cap-and-trade systems, encouraging countries and businesses to reduce emissions and invest in clean technologies
    2. Payments for ecosystem services (PES) compensate countries or communities for protecting and preserving ecosystems that provide global benefits (REDD+: Reducing Emissions from Deforestation and Forest Degradation)
    3. Green finance mobilizes private and public investment in environmentally sustainable projects and technologies (green bonds, funds)
  • Combining international agreements and market-based approaches
    • Using market-based mechanisms within the framework of international agreements (international carbon markets under the Paris Agreement)
    • Leveraging international agreements to create enabling environments for market-based approaches (capacity building and technology transfer provisions in MEAs)

Key Terms to Review (15)

Biodiversity: Biodiversity, or biological diversity, refers to the variety and variability of living organisms within a given environment. It encompasses the diversity of all life forms, including plants, animals, fungi, and microorganisms, as well as the ecosystems in which they exist and the interactions between them.
Carbon Footprint: A carbon footprint is the total amount of greenhouse gas emissions, primarily carbon dioxide, generated directly and indirectly by an individual, organization, event, or product. It is a measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.
CITES: CITES, the Convention on International Trade in Endangered Species of Wild Fauna and Flora, is an international agreement aimed at regulating and restricting the global trade of wild animals and plants to prevent their overexploitation and extinction. It is a crucial framework for addressing international environmental issues related to the protection of endangered species.
Convention on Biological Diversity: The Convention on Biological Diversity is an international treaty that aims to conserve the world's biological diversity, promote the sustainable use of its components, and ensure the fair and equitable sharing of the benefits arising from the utilization of genetic resources. It is a key international agreement addressing global environmental issues.
Convention on International Trade in Endangered Species: The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is an international agreement that aims to regulate and restrict the international trade of wild animals and plants that are threatened with extinction. It establishes a framework for countries to work together to prevent the overexploitation of species through commercial trade.
Ecosystem Diversity: Ecosystem diversity refers to the variety and variability of living organisms and the ecological complexes in which they exist. It encompasses the diversity of all living components, including plants, animals, fungi, and microorganisms, as well as the diversity of the non-living components, such as air, water, and soil, that make up an ecosystem.
Ecosystem Services: Ecosystem services are the benefits that humans directly or indirectly obtain from the natural environment and functioning ecosystems. These services are crucial for supporting and fulfilling human well-being and economic activities.
Externalities: Externalities are the unintended consequences of an individual's or firm's actions that affect other parties not directly involved in the transaction or activity. These spillover effects can be positive or negative and impact third parties who did not choose to incur the costs or benefits.
Genetic Diversity: Genetic diversity refers to the variety of genetic information present within a species or population. It encompasses the different alleles, genes, and genetic characteristics that can be found among individuals, contributing to the adaptability and resilience of a species in the face of environmental changes and challenges.
Global Commons: The global commons refers to natural resources and environments that are not owned or controlled by any single nation or private entity, but are shared and accessible to all of humanity. These include the Earth's atmosphere, oceans, outer space, and the Antarctic region.
Montreal Protocol: The Montreal Protocol is an international agreement signed in 1987 that aims to protect the Earth's ozone layer by phasing out the production and use of ozone-depleting substances (ODS). It is a landmark environmental treaty that has been widely successful in reducing the levels of harmful chemicals in the atmosphere, allowing the ozone layer to gradually recover.
Paris Agreement: The Paris Agreement is a legally binding international treaty on climate change, adopted in 2015, with the goal of limiting global warming to well below 2°C above pre-industrial levels, and pursuing efforts to limit it to 1.5°C. It serves as a framework for global efforts to mitigate and adapt to the impacts of climate change.
Species Diversity: Species diversity refers to the variety and richness of different species within a particular ecosystem or geographic region. It is a crucial component of biodiversity and plays a vital role in maintaining the overall health and stability of natural environments.
Sustainable Development: Sustainable development is a concept that emphasizes meeting the needs of the present without compromising the ability of future generations to meet their own needs. It focuses on balancing economic growth, environmental protection, and social well-being to ensure long-term, responsible development.
Tragedy of the Commons: The tragedy of the commons describes a situation in which individuals, acting independently and rationally according to their own self-interest, will ultimately deplete or destroy a shared resource, even when it is not in anyone's long-term interest for this to happen. This concept is particularly relevant in the context of international environmental issues.
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