Paraphrase 3

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Introduction
Emission trading scheme (ETS) is an approach that is market-based used to control pollution. It can provide incentives economically to attain pollutant emission reductions. There exist two schemes of ETS; ‘trade and cap’ and ‘the base-line and credit’.
Emission Trading Scheme in Australia
Discussions and policies of Australian have preferred a “cap and trade” scheme for solutions. According to the research paper by Leslie Nielson (2008), ‘cap and trade’ scheme is a combined cap or limit emissions coming from particular areas. Cap and trade is established by the pertinent government using a definite emissions trading scheme regulator. In 2007 late, Kyoto protocol was ratified by Kevin Rudd the former Prime Minister. After which the government involved in discussions concerning the taking effect agreement, after the commitment period of the first Kyoto protocol. The protocol enabled the international trade in permits and credits for emissions.
The scheme’s objective is to commit Australia comply with its duties encrypt in Kyoto Protocol for the reduction of the carbon dioxide equivalent emissions. Australian government report, (2008), the government was committed to the introduction of ‘cap and trade’ ETS in Australia by the year 2010. The limits were to be set by the government on nation’s emission of Green house gasses. Referring to the main tests for the Australian ETS of March 2008, there has to be consistency between caps in Emission Trading Scheme and reduction of national emissions by 25% to 40% cut at least, having 1990 as a bench mark by the year 2020. Over time, these limits will gradually be lowered with Australian a vision of 60% of the year 2000 emission reduction by the year 2050, as quoted from the government of Australia.
Australian Institute of Charted Accountants, 2008, shows that cap and trade scheme encompasses setting of overall cap on the capacity of emissions of the scheme participants. The permits of emission represent one tone of CO2 emotions, which scheme participants are allocated. Participants in positions of emitting less than what has been allocated to them by the permits trade their excess permits with those emitting more than their permits. Determination of permit price is relative to supply of and demand available for the permits. The Australian research show that coal burning, community car usage and industrial emission discharge, are the main emitters of carbon dioxide in Australia.
The Comparison of Kyoto Protocol in Australia and Other Countries
The AAUs under the protocol are allocated to the countries. AAUs are assigned to the equivalent CO2-e greenhouse gasses emission tonnage. Every country is permitted to emit according to its Kyoto commitments between the periods of 2008 to 2012. Australia has AAUs that is equivalent to 108% of 1990emissins level. Furthermore, Kyoto protocol countries have the permission to trade the surplus units. The selling and buying of AAUs forms the basis of international carbon market establishment. The AAUs trading, provides the foundations of an international Emissions Trading Scheme. The columnists, environmentalists and opinion leaders of Australia, speculate that the agreement of post-Kyoto in 2009 will be successfully negotiated and ready to commence in 2012. The current emission data shows that there is no country that unambiguously met its targets of Kyoto, and based on their present performance, these countries’ prospect of making commitments that are deeper in post-Kyoto agreement against their present commitments looks unlikely. It has been shown that every country’s per capita in 2004 produce carbon dioxide. Australia comes second in CO2 emissions.
Emissions Trading
The property rights approach is used by Emissions Trading in the incentive provision for individuals to conserve their environment by illustrating their rights and duties for common property. The environmental quality is the common property in question, and in such a case, the atmosphere quality. The two key variations on the systems of emissions trading are: cap and trade system, and the Trading Emission Abatement Credits.
Cap and Trade
A system of tradable permits that allow a set of amount of emissions to be made is created by the cape and trade approach. The tradable number of permits is fixed, to limit the quantity of emissions made in any one period. The tradable permits are allowances, quotas or ceiling on levels of pollution emissions that when allowed to polluters, subject to a set of prescribed rules, it can be traded. The tradable permits ownership allows a firm to pollute to a certain extent. Firms choosing less emission than what they are allowed to emit, might sell the surplus permit to other industries. However, they can use surplus in offsetting the excess emissions in other parts of the firm.
In this regime of pollution control, firms having least abatement costs have incentives to control more emissions, while those having higher abatement expenses have incentives to purchase permits rather than investing in expensive pollution control equipments. Within the regulatory framework, the determination of the most efficient method of pollution control is left to the market. In a cap and trade approach, the government of Australia will have to set limits on the country’s emission of greenhouse. Over time, such limits will be lowered gradually with a view to Australia‘s emission reduction by 60% of the 2000 emissions by the year 2050.
Trading Emission Abatement
It needs emitters to buy a set amount of certificates of emission abatement. The certificates are created when technologies of energy saving like solar hot heaters and improved ...