Offsetting carbon regulations

The world of ‘carbon offsetting’ has suddenly become trendy. With bands like Coldplay and the Rolling Stones making their tours ‘carbon neutral’ and government ministers offsetting all the environmental cost of their overseas travel, the industry has hit the limelight. Even Tony Blair, under pressure over his personal holidays has relented and agreed that he will offset all his personal travel. However, up to now the industry has been unregulated and standards have been uncertain. Defra has now set new standards for the industry to comply with and the articles below consider the impact of this regulation.

Questions

1. Using diagrams as appropriate, explain how carbon offsetting is intended to reduce the environmental impact of plane travel.
2. Discuss the effectiveness of carbon offsetting as an approach to reducing the impact of increasing plane travel.
3. Suggest one demand-side and one supply-side policy to reduce the carbon emissions resulting from air travel and assess their relative effectiveness.