Addressing Climate Change due to Emission of Greenhouse Gases Associated with the Oil and Gas Industry: Market-Based Regulation to the Rescue

Abstract

Purpose

This chapter examines the UK and the Nigerian approach to reducing emission of greenhouse gases (GHGs) into the environment as a result of gas flaring utilising the market-based regulation. Determining how different jurisdictions fare in the quest to reduce GHG emissions associated with the oil and gas industry is essential because: policy makers have realised the advantages of market-based regulation over the command-and-control regulation; and in the light of various pledges different countries have made in different forum to reduce the emission of GHGs, particularly in the wake of the recently held Paris climate change conference.

Design/methodology/approach

Library-based approach is used, providing conceptual and theoretical understanding of climate change, GHG emissions and various market-based regulatory tools utilised in the United Kingdom and Nigeria in regulating emission associated with operations in the oil and gas industry.

Findings

The study reveals the significance of environmental regulations that encourage region integration and flexibility in the implementation of environmental policies. Moreover, it finds that the Paris Agreement re-affirms the utilisation of market-based regulations and indicates a future for investment in the oil and gas industry.

Practical implications

The study revealed that there are lacunas in regulations and strategies for the implementation of environmental regulations which need to be addressed in order to achieve zero or a significant decrease in gas flaring.

Originality/value

This study provided an ample opportunity to theoretically examine market-based regulatory tools utilised in the oil and gas industry in a developed country in relation to a developing country.

Citation

Enabulele, O., Zahraa, M. and Ngwu, F.N. (2016), "Addressing Climate Change due to Emission of Greenhouse Gases Associated with the Oil and Gas Industry: Market-Based Regulation to the Rescue", Climate Change and the 2030 Corporate Agenda for Sustainable Development (Advances in Sustainability and Environmental Justice, Vol. 19), Emerald Group Publishing Limited, Leeds, pp. 45-75. https://doi.org/10.1108/S2051-503020160000019003