Demand-side policies such as carbon pricing are not sufficient to address the climate crisis.

Stanford and Martin
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Question 1
Demand-side policies such as carbon pricing are not sufficient to address the climate crisis. Are they right?
Climate change remains a critical global issue and the overall target is zero carbon emissions. Due to this governments across the globe are implementing a range of measures such as carbon pricing that are meant to put a monetary value on global warming emissions. However, a policy that focuses on carbon pricing as the primary solution to decarbonization has fundamental problems. It causes the government to focus its attention on market failures thereby concentrating on emission-intensive firms instead of solving system problems. The aim should be to change various societal functions that lead to GHG emissions. Aspects such as infrastructure, technologies, lifestyles, and regulations are closely associated with the combustion of fossil fuels (Stan Cox and Larry Edwards, 2020). So, a climate change policy should be geared towards fixing these existing system problems through various measures shown below.
Achieving a future of zero GHG emissions requires an integrated approach as using demand-side policies like carbon pricing isn’t sufficient. Carbon pricing mainly targets emission-intensive companies which are responsible for the high emissions. Yet, the combined emissions by other companies also contribute to higher GHG emissions. Offering tax breaks or bailouts to these companies isn’t enough for governments to ensure firms move towards a zero-emissions strategy. Several policies can be implemented to promote a positive impact on climate. Integrating these policies will go a long way in reducing emissions.
First, governments need to invest heavily in clean energy infrastructure which includes encouraging the use of renewable energy sources such as wind and solar in the economy. This involves modernizing the national grid system. This kind of measure has a significant impact on lowering carbon emissions nationwide and won’t only cover fossil-intensive companies.
Second, another policy is to expand education and training relating to decarbonization. By creating awareness for individuals and companies, people can partner to protect the environment from harmful carbon emissions (Hepburn et al., 2020). This investment ensures that farmers use climate-friendly practices which protect the ecosystem. Third, carbon pricing isn’t sufficient since, for the long-term success of a climate policy, the government must expand the clean-energy industry. Incentives are necessary to motivate companies to invest in clean energy Research and Development. A global survey of fiscal recovery measures showed that clean R&D spending had a strong impact on climate. It ranked as one of the most desirable policies with substantial positive climate impact potential. Therefore, a sustainable integrated long-term policy is a greater alternative to carbon pricing strategies. It focuses on making progressive changes in various societal aspects with a major focus on innovative practices that will lower carbon emissions. Innovations have been key in creating clean energy technologies in various economic sectors. This argument shows that govern...