Energy Policy and Climate Change: North America in the Context of the Western Hemisphere

This paper in "North America" contends that there are two subsystems of energy use/climate change in the Western Hemisphere: that of North America, characterized by high energy integration & per capita consumption; & that of the subcontinent, characterized by low energy integration & consumption. However, within North America, Mexico's per capita consumption is considerably lower than that of the US & Canada, while in South America, Venezuela, Argentina, & Chile consume comparatively more than the other countries. On the other hand, while the center of political & economic gravity of the Central American & Caribbean countries is North America, these countries are among the lowest in energy consumption of the hemisphere. Considered in light of the disparity of consumption & wealth, it is argued that if, in an effort to reduce climate change, the US adopts a cap & trade system, its poorer South American neighbors would benefit from the trade. If, however, it adopts a direct tax on carbon, though this is a much less likely alternative, the other North American countries would reap the most benefits. Adapted from the source document.