Friday, June 22, 2012

Rio +20 Summit: the expected outcome

Brazil is a nice place to visit, Brazilians are nice people to meet. Rio de Janeiro has nice beaches and touristic attractions. It is all add up to the expected outcome of the Conference on sustainable development , held this week in Rio: No real progress to deal with the implications for global warming, of economic growth without environment restrictions. Because of their upbeat mood ,Brazilians are the only ones capable of getting involved in events like this one, with no expectations of meaningful outcome .It was the same in 1992 (just coincidence?), when the world was anxious about the new expectations arising from the new scenario ,after the collapse of east Europe regimes. Twenty years later Dioxide of carbon emissions have gone up by 40%, and there still no deep rooted consciousness about the risk of doing nothing about climate change. However, each event means a step forward, although the issue of climate change, will not be strongly addressed ,because there is no incentive to be the first, whether the next one do not care about it .Global climate is a global public good , which like many public good in economics end up in market failure. It means its overexploitation and destruction. The only way this failure might be fixed, is with a global institutional framework with the proper tools to deal with the implications of breaking the universal environment laws. The ones which says, that as the inputs apply over a fixed resource, the outcome will diminish. It follow that there is also a technological variable to take into account to deal with the problem. Faster Technological progress, matter. It will allow not only cleaner production process, but also to capture dioxide emissions. Thus, the problem of global warming have more chance of decisive action, when it come to individual action dealing the application of the new technologies, mainly those ones environment friendly. It also helps to get further progress, to have new international laws for market exchange mechanism of green bonds, or to consider environment protection into the productive process . All of these is hard to get by, with massive deployment of opinion. It might work better based on case by case approach.-