Imperative Energy Pricing Needs Improved †Myassignmenthelp.Com

Question: Discuss About The Imperative Energy Pricing Needs Improved? Answer: Introducation Running out of fossil fuels does not matter in the context of the climate change as the current reserves are capable of producing far more carbon dioxide than which is permissible in order to keep the temperature increase with the 2 degree temperature increase limit on which financial consensus exists currently. It is estimated that the current reserves of fossil fuels are capable of producing 2,795 gigatons of carbon dioxide which is approximate five times the safe limit of 565 gigatons which is considered safe. Also, the actual estimates of reserves would be much higher and therefore the existing reserves of these fossil fuels are more than enough for catastrophic damage. Hence, the core issue is not what would happen once these fossil fuels get exhausted but rather what would happen as these get exhausted and contribute to climate change menace (McKibben, 2012). Due to lack of political will and the economic interests of oil producing companies, it is imperative that energy pricing needs to be improved. This can be done by ensuring that there is a carbon tax which highlights the price of carbon to the environment. It should be sufficiently high so as to adversely impact the profitability margins of fossil fuel producers to such an extent that there existing reserves are left worthless. Also, since the end prices of fossil fuels would be higher hence the consumers would also use these fossil fuels in a more economic and efficient manner which would lower down the consumption and hence the carbon dioxide emissions (McKibben, 2012). Reference McKibben, B. (2012, July 19), Global managementWarmings Terrifying New Math, Rolling Stone Website. Retrieved on September 19, 2017 from https://www.rollingstone.com/politics/newsglobal-warmings-terrifying-new-math-20120719