Asia & the Pacific

Robert Stavins argues for an economic approach to solving environmental problems and explains why "environmental economics" is not an oxymoron.

The authors explore a novel approach to evaluating the ambition and fairness of countries' voluntary pledges to reduce emissions. This approach could facilitate negotiations at the upcoming UN climate conference in Lima—and the broader process leading to a new 2015 international climate agreement.

The United States' extended system of security commitments creates a set of institutional relationships that foster political communication. Alliance institutions are first about security protection, but they also bind states together and create institutional channels of communication. For example, NATO has facilitated ties and associated institutions that increase the ability of the United States and Europe to talk to each other and to do business. Likewise, the bilateral alliances in East Asia also play a communication role beyond narrow security issues. Consultations and exchanges spill over into other policy areas. This gives the United States the capacity to work across issue areas, using assets and bargaining chips in one area to make progress in another.

"China narrowed the gap in terms of gross domestic product (GDP) and will likely overtake the United States as the world's largest economy sometime between 2015 and 2040. What matters for national power, however, is not gross wealth, but net wealth—the wealth left over after people are clothed and fed. China's 1.3 billion people produce a large volume of output, but they also consume most of it immediately, leaving little left over for national purposes."

"Amid setbacks and chronic challenges in almost every major region, Washington views South Korea as a linchpin on a global scale. From hosting the G20 summit in 2010 to preparing to host the next Nuclear Security Summit in 2012, South Korea has been establishing itself as a global partner in addressing common challenges, ranging from rebalancing the international economy to preventing the use of nuclear materials for terrorist attacks. For President Lee, the state visit is an important opportunity to demonstrate South Korea’s unique role as a bridge between the developed and developing countries."

The Kyoto Protocol establishes a very complex and ambitious regime, in architecture if not stringency. The problem is that relatively few states, representing only about a quarter of the world's emissions, have been willing to assume emission targets under Kyoto....The future of the Protocol thus seems doubtful at best. Even in the most optimistic scenario, a new round of emissions targets couldn't be agreed in time to prevent a legal gap between the first and second commitment periods. A possible middle ground would be to establish a transitional regime that would be political in nature, but that could evolve over time into a legally-binding regime.

With regard to developing a new international framework, developed countries should acknowledge how grave the consequences would be to easily give in to a Kyoto extension. Merely extending the Kyoto Protocol would surely delay mitigation actions on the part of developing countries and discourage the U.S. from making serious efforts to reduce its large energy consumption. In other words, no country should end up being a "climate-killer" in its attempts to avoid being called a "Kyoto-killer."

"...[T]he Copenhagen Accord is "only" a political agreement, so it does not provide sufficient assurance that countries will take action. But how much difference does it make that the Copenhagen Accord is a political rather than a legal agreement? Obviously, political agreements do not require domestic ratification, so they provide a weaker signal of domestic commitment. But the legal versus non-legal form of an instrument makes less of a difference in other respects, such as judicial enforcement, since even when an agreement is legally-binding, there are relatively few opportunities for adjudication either internationally or domestically. And evidence from other regimes suggests that states often take non-binding agreements quite seriously and make significant efforts to implement them."