Introduction
Cost benefit analysis involves weighing the cost of preventing and curbing the climate change and its effects compared to the benefits derived in the efforts to curb climate change and its effects. In economics the determination of future value of the projects put in place usually involves the use discount rate which is a factor of time and the level of investment in terms of money and capital. This exercise of cost benefit analysis on prevention of climate change involves research which requires accuracy in relation to estimation of the costs that will be incurred in curbing climate change and the probability of success in the efforts to curb this problem. The whole process involves estimating the volumes of greenhouse gases released into the atmosphere on daily basis from the industries and domestic places into the ecosystem. It also involves weighing the effects of climate change in relation to the cost of preventing it. This process involves the costs involved in mitigating the effects of climate change.
For success of this process it requires the involvement of the whole globe in curbing the issue. It involves cooperation of the whole countries all over the world so as to succeed in the whole process. The estimation of future spending is not accurate due to dynamic forces in the society and all over the globe. The process of regimes and price policy should be international in nature. The price of greenhouse gas emissions are of essence in discounting the effects and social costs of climate change on the environment. This calls for establishment of realistic policies and targets for ultimate concentrations of the greenhouse gases in the atmosphere. The costs of mitigating the effects of climate change are of essence therefore they are also to be evaluated in detail.
Most of studies and research on greenhouse gases only focus on volumes of carbon gases released into the atmosphere but it does not take into account the fact volumes of these gases accumulates in the atmosphere. Carbon gases are not the only causes of greenhouse gases since there are also other gases like sulphuric gases as well as nitrous gases. These other gases have always not been taken into account which makes the research not effective and realistic results may not be achieved. The research on volumes of greenhouse gases emission has not covered the whole world making it unreliable.
In the process of curbing climate change, all countries may not participate fully in due to some reasons. Most people believe that it is not wise to spend savings for the future generation in this exercise, this in turn frustrate the efforts of curbing climate change. The business will continue as usual since as some countries put measure in controlling the emission of gases other countries do not participate in this process. This issue of countries failing to work together will result in the failure of process of controlling emission of greenhouse gases and results in loss of money since the objective of the process is not likely to be achieved. For instance, most of the developing countries may not be willing to invest heavily in controlling emission of greenhouse gases because they will suffer difficult economic conditions.
The world at large is currently feeling the effects of climate change which are likely to increase in the future but the efforts to curb this problem is facing many challenges. The main contributors to difficulties in preventing global warming are the issue of countries failing to participate in the process due to various social and economic factors.
