The impacts of global warming will vary a great deal from one region to another. That means that the policies appropriate for one region may not be appropriate for another. Similarly, the institutional arrangements available for addressing the problems of global warming will also vary a great deal. This includes the capability of markets to perform efficiently, and thus the efficiency and effectiveness with which markets can bring resources to bear on the problem. In the developed Organization for Economic Cooperation and Development (OECD) countries, for the most part the institutional arrangements available to address global warming problems are more than adequate, although the political processes for consolidating constructive action may have less capability. In both domains, the capability in many developing countries is less than what is expected to be necessary for effective action in the face of climatic difficulties.
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