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In 2001, the Intergovernmental Panel on Climate Change's Third Assessment Report revealed an important increase in the level of consensus concerning the reality of human-caused climate warming. The scientific basis for global warming has thus been sufficiently established to enable meaningful planning of appropriate policy responses to address global warming. As a result, the world's policy makers, governments, industries, energy producers/planners, and individuals from many other walks of life have increased their attention toward finding acceptable solutions to the challenge of global warming. This laudable increase in worldwide attention to this global-scale challenge has not, however, led to a heightened optimism that the required substantial reductions in carbon dioxide (CO2) emissions deemed necessary to stabilize the global climate can be achieved anytime soon. This fact is due in large part to several fundamental aspects of the climate system that interact to ensure that climate change is a phenomenon that will emerge over extensive timescales.

Although most of the warming observed during the 20th century is attributed to increased greenhouse gas concentrations, because of the high heat capacity of the world's oceans, further warming will lag added greenhouse gas concentrations by decades to centuries. Thus, today's enhanced atmospheric CO2 concentrations have already “wired in” a certain amount of future warming in the climate system, independent of human actions. Furthermore, as atmospheric CO2 concentrations increase, the world's natural CO2 “sinks” will begin to saturate, diminishing their ability to remove CO2 from the atmosphere. Future warming will also eventually cause melting of the Greenland and Antarctic ice sheets, which will contribute substantially to sea level rise, but only over hundreds to thousands of years. As a result, current generations have, in effect, decided to make future generations pay most of the direct and indirect costs of this major global problem. The longer the delay in reducing CO2 and other greenhouse gas emissions, the greater the burden of climate change will be for future life on earth.

Collectively, these phenomena comprise a “global warming dilemma.” On the one hand, the current level of global warming to date appears to be comparatively benign, about 0.6°C. This seemingly small warming to date has thus hardly been sufficient to spur the world to pursue aggressive CO2 emissions reduction policies. On the other hand, the decision to delay global emissions reductions in the absence of a current crisis is essentially a commitment to accept large levels of climate warming and sea level rise for many centuries. This dilemma is a difficult obstacle for policy makers to overcome, although better education of policy makers regarding the long-term consequences of climate change may assist in policy development.

The policy challenge is further exacerbated by factors that lie outside the realm of science. There are a host of values conflicts that conspire to prevent meaningful preventative actions on the global scale. These values conflicts are deeply rooted in our very globally diverse lifestyles and our national, cultural, religious, political, economic, environmental, and personal belief systems. This vast diversity of values and priorities inevitably leads to equally diverse opinions on who or what should pay for preventing or experiencing climate change, how much they should pay, when, and in what form. Ultimately, the challenge to all is to determine the extent to which we will be able to contribute to limiting the magnitude of this problem so as to preserve the quality of life for many future generations of life on earth.

Purpose – The purpose of this chapter is to propose a cross-assessment model as an analytical tool for developing sustainable urban transport and land-use strategies for a low-carbon society.

Methodology – A cross-assessment model is developed based on demand and supply models of transport services. The model is able to generate a set of the optimal service levels in public transport reflecting selected target strategies. It is applied to an impact analysis of public transport and land-use strategies in 2030 for all of Japan's 269 urban areas,with outcomes – including the financial balance of public transport operation, user benefits and CO2 emissions reduction – compared among strategies and urban areas.

Findings – The analytical results show that three value factors of efficiency, equity and the environment do not necessarily conflict with each other. In particular, it is clarified that CO2-emission reduction targets can contribute to the improvement of both financial balance and user benefits at the national level. In addition, the results of comparative analysis among the land-use and transport integration (LUTI) scenarios demonstrate that a combination of urban transport strategies and land-use control in the form of ‘corridors and multi-centres’ provides greater emission reduction and increased user benefits.

Implications – The cross-assessment model developed in this chapter could serve as an analytical tool for strategic transport planning. The results in this chapter underlinethe benefit of LUTI strategies particularly in China.

Purpose – To examine the cost-effectiveness of UK government policy with respect to the mitigation of carbon emissions from the transport sector.

Methodology/approach – Existing policy as set out by the Department for Transport in Low Carbon Transport: A Greener Future is examined. This document elaborates a Low Carbon Transport Strategy intended to achieve annual emissions savings of 17.7 MtCO2 by 2020. A wide range of policy areas where further action could be taken to reduce carbon emissions are examined and their cost-effectiveness considered.

Findings – Measures that influence behaviour including smarter choices, eco-driving across modes, freight best practice and modest price increases are highly cost-effective. More cost-effective routes to saving 17.7 MtCO2 are identified, as are further cost-effective savings.

Originality/value – It appears that government targets could be delivered and indeed exceeded at lower cost than the Low Carbon Transport Strategy. However, policy development is influenced by a wide range of factors which help to explain why cost-effective measures are not always fully exploited.

A variety of gases, including water vapor (H2O), carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), add to the radiative forcing of Earth's atmosphere, meaning that they absorb certain wavelengths of infrared radiation (heat) that is leaving the Earth and thus raise the temperature of its atmosphere. Since glass has the same effect on the loss of heat from a greenhouse, these gases are known as “greenhouse” gases. It is fortunate that these gases are found in the atmosphere; without its natural greenhouse effect, Earth's temperature would be below the freezing point, and all waters on its surface would be ice. However, for the past 100 years or so, the concentrations of CO2, CH4, and N2O in the atmosphere have been rising as a result of human activities. An increase in the radiative forcing of Earth's atmosphere is destined to cause global warming, superimposed on the natural climate cycles that have characterized Earth's history.

Purpose – This study constitutes a first attempt to experimentally test the performance of a 100% auction versus a 100% free allocation of CO2 permits under the rules and parameters that mimic the EU ETS (imperfect competition, uncertainty in emissions' control, and allowing banking), with environmental targets more restrictive than the current ones but foreseeable for the near future.

Methodology/approach – Two experimental treatments were run to achieve our goal. Both included the rules and the parameters that parallel the EU ETS structure, the only difference being the rule for the primary allocation of permits.

Findings – Our experimental results indicate that the EU ETS has the potential to reduce CO2 emissions, achieving targets considerably more restrictive than the current ones at high efficiency levels, both with auctioned and free emission permits.

Practical implications – Concerns about undue scarcity, and corresponding high prices, in secondary markets generated by a primary auction market are not warranted under the proposed dynamic auction format. This adds arguments favoring auctioning over grandfathering as the rule for the initial allocation of emission permits in the EU ETS.

Originality/value of chapter – This study implements a theoretically appropriate auction format for the primary allocation of emission permits (the Ausubel (2004) auction) and incorporates a first attempt to include in the analysis measures of the risk preferences of subjects participating in emission permits experiments. These characteristics are for the first time implemented under a complex experimental design (including uncertainty of emission abatement, and banking), trying to parallel the EU ETS trading environment.

The Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR4) (Intergovernmental Panel on Climate Change, 2007) of 2007 concluded that most of the warming of the climate is very likely driven by human activities that increase greenhouse gas (GHG) concentrations in the atmosphere. Activities such as burning of fossil fuels for power generation and in vehicles, as well as increasing deforestation, result in emissions of four long-lived GHGs: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and halocarbons (a group of gases containing fluorine, chlorine, or bromine). The report projects that by the end of the 21st century global temperatures could rise by 1.1–6.4°C over 1990 levels, while global mean sea levels could rise by 18–59cm, depending on future scenarios of varying global emission levels. This is likely to adversely impact ecosystem resilience, putting many plant and animal species at the risk of extinction. Sea level rise and coastal erosion coupled with temperature extremes, heat waves, and heavy precipitation events that are projected to become more frequent will affect the health and well-being of millions of people around the world.

Purpose – This chapter shows the politics, plans, strategies, initiatives Municipality of Milan is putting in place, in the European Union context, in order to reduce its green gas emissions and to mitigate the negative effects of climate change.

Design/methodology/approach – The study was conducted on the basis of primary and secondary sources, in particular the analysis of municipal official documents.

Findings – The city of Milan structured its strategy against climate change in two branches: on one hand Milan takes part of national and international networks, on the other hand it acts at local level through the adoption of an ad hoc plan (called ‘Piano Clima’).

Originality/value – Among other things, this study shows the relevance of cooperation with different and similar urban areas. In fact, in order – both – to plan and to implement the most part of its initiatives against climate change, the contacts, exchanges, relations with other cities have been and will be of vital relevance for the city of Milan. From the experiences of peers, you can learn, for example, what measures are most effective, what measures are the easiest to implement and most accepted by citizens, how to implement measures.

This chapter explores the issues in estimating the greenhouse gas (GHG) emissions from the tourism industry and related activities in Australia. A production-based approach is employed and its rationale is explained. The scope of tourism consists of the economic activities of tourism-characteristic and tourism-connected sectors as defined in the Australian Tourism Satellite Account (TSA). The GHG emissions have been estimated for 2003–04, the latest year for which detailed industry GHG emissions data are available in a form suitable for this type of estimate. Tourism's GHG emissions are compared with other industries in the Australian economy. The policy implications of the results are discussed. It should be possible to adopt a broadly similar method for any destination with a TSA, enabling tourism stakeholders to play an informed role in assessing appropriate climate change mitigation and adaptation strategies for their destination.

Although the general theory of greenhouse warming has been understood by scientists since the end of the nineteenth century, an international regime to address the problem of climate change began to develop only in the late 1980s.¹ In the decade and a half since then, the regime has undergone a remarkable evolution. In 1992, states adopted the UN Framework Convention on Climate Change (UNFCCC), which took effect in 1994 and serves as the “constitution” for the international climate change regime.² In 1997, the UNFCCC was supplemented by the Kyoto Protocol, which requires industrialized countries to reduce their emissions of carbon dioxide and five other gases that contribute to the greenhouse effect (so-called “greenhouse gases” or GHGs for short). And the 2001 Marrakesh Accords further elaborate the Kyoto Protocol's regulatory regime, setting forth detailed rules for how the Kyoto Protocol will operate.