Statement

Many chemical compounds found in the Earth’s atmosphere act as greenhouse gases. Levels of several important greenhouse gases have been increased by roughly 25 % since the beginning of the industrial revolution 150 years ago. Computer-based models have shown that rising concentrations of greenhouse gases result in an increase in the average temperature of Earth. These rising temperatures may in turn lead to changes in weather, sea levels, and land use patterns (EIA). The possibility that human activities are releasing green house gases, at rates that could affect global climate has resulted in proposals for national programs to curtail emissions. The Kyoto Protocol is an international agreement, negotiated in December 1997, by which industrialized nations have committed to making substantial reductions in their emissions of greenhouse gases by 2012. A total of 155 countries have committed to the agreement thus far. Although the US has not ratified the Kyoto Protocol, various initiatives to reduce green house gases are carried out by policy makers in various states. Companies face much uncertainty about the competitive effects of the Protocol and upcoming regulatory measures