ABSTRACT

Whilst there is much we can do locally, action is also needed at the global level. We all share the same planet, the same atmosphere, so emissions from one country can affect sea levels in other countries like Bangladesh and the Pacific Islands. Hence, there is an inevitable need for nations to collaborate to solve common problems. Many of our institutional structures are nationally based and are struggling to address these issues on the scale required, a global scale, to make a lasting difference.1 But what decisions should be made at the global level? Clearly global public goods and externalities need to be addressed at the global level with cooperation amongst nations. The Montreal Protocol that governs the phasing out of ozone depleting chemicals, as discussed earlier, is a great successful example of global cooperation. But new forms of governance from both government and business together and reform of institutions will be needed. But more than just economics and environmental externalities are at play in the real world.