Question

Identify one argument against ratifying the Kyoto Protocol, and explain why ratification might be a bad idea.

Answer 1

One argument that could be used against the ratification of the Kyoto Protocol is that environmental protection against greenhouse-effect emissions is expensive for both goverments and for firms.

Implementing such protections increases the costs of production of companies,whose productivity is reduced, and therefore they become less competitive in the international markets, which reduces their ability to serve large market shares and, ultimately, it reduces their profits. In absolute terms, if many firms experience such process, the national product would be diminished.