Climate Change Strategy: THE BUSINESS LOGIC BEHIND VOLUNTARY GREENHOUSE GAS REDUCTIONS.

This article examines the efforts of businesses to voluntarily control the emission of greenhouse gases (GHG). American policymakers have not ratified the Kyoto Treaty to control the emission of GHG, feeling the initiative is futile if developing countries such as China, India and Brazil are exempt, and that the costs of compliance with the Treaty will provide a drag on the U.S. economy. This has created uncertainty in the U.S. business sector, where managers do not have a clear picture of future market environments from which to make strategic business decisions. The article examines the voluntary control of GHG emissions as a market transition, and explains how industry will react to changes in the marketplace where Kyoto Protocol and voluntary controls are observed.