Social cost of environmental pollution & application of counter measures through clean development mechanism with the effect of additionality & baseline — In the context of developing countries

The developing countries are also allowed by the Kyoto Protocol to meet their GHG emissions, so that they may be benefited from CDM projects to promote sustainable development. The developed countries have privilege to purchase CER credits (in units equivalent to one tonne of CO₂ gas emission reduction) to meet the emission target as specified in the Protocol. Thus the developed countries are bound to pay social cost against pollution. The key concepts in CDM are ´Baseline´ and ´Additionality´. Baseline emission minus project emission is equal to Emissions Reduction. The concept of CER trading ´to make pollution costly to the polluters´ matches to the idea of Pigovian Tax which leads to an improvement of the quality of life measured by the Genuine Progress Indicator and other human economic indicators e.g. higher GDP growth. Fuels should be changed for cleaner and greener environment. In the case of industries, coal produces huge quantity of oxides of carbon and other VOCs, hence contributes profusely in air pollution. CBM, a suitable substitute has a heating capacity of ~1000 Btu/CuFt of gas. In the case of automobiles, CNG or LPG produces less emission than petrol or diesel. Cost effectiveness of these fuels is an added advantage to the developing countries.