Measuring the economic benefits of the Kyoto Protocol. The Kyoto Protocol was signed in 1997. The Protocol calls for industrialized countries that become party to it to decrease their greenhouse gas emissions to 5 percent below their 1990 levels during the years 2008-2012. The principal gas believed to be behind increases in the global temperatures is carbon dioxide.
Carbon dioxide is emitted through the burning of fossil fuels such as oil and coal.
Critics of the Protocol argue that decreasing carbon emissions would come at the expense of economic growth. The authors of the study argue that if industrialized nations were to promote energy efficient products such as high efficiency vehicles, appliances, and lighting systems they could profit from the development of these new products while at the same time cutting their carbon emissions. Companies and families are often deterred from investing in energy efficient products because their immediate costs are high. The money saved by using these products is only visible over the longterm. According to the study, this is where governments need to do a better job of promoting these products and technologies through energy efficiency standards and tax incentives.