Fisheries Economics

8.2.1 Fisheries Trade and Environment

Trade is necessary for national income. Since trade is an economic activity undertaken with profit-only motive, it has created many serious concerns on the health of the people as well as on the environment. The Kyoto Protocol raised the issue of protecting environment while addressing trade issues. The Kyoto Protocol to the United Nations Framework convention on Climate Change envisaged binding reductions on greenhouse gas emissions. In this regard it stipulated three mechanisms:

(i) International emissions trading

(ii) Joint implementation and

(iii) Clean development mechanism.

Needless to say,these mechanisms need to be supplemented with domestic actions. Carbon tax was proposed against non-kyoto protocol compliant countries. This carbon tax was to be levied on import of goods from countries who do not adhere to the Kyoto protocol beyond 2012.

While Europe Stated that it would respect Kyoto protocol, it also urged that simultaneous action by all concerned is needed. Suppose a country sets tough measures for such gas emissions. If the competitors (countries) do not adhere to such tough measures, then it stands to gain. The USA and Australia have steadfastly refused to ratify Kyoto protocol and declined to adher to it.