The level of policy intervention must correspond to the level of analysis. It is not correct to jump (without a multi-level analysis) from a higher level of analysis to a lower level of conclusion on which the policy intervention is based. This would produce a fallacy of disaggregation. Hence if the problem has been stated and analyzed as one of man-made, CO2-induced climate change at the global level, one cannot simply assume for example that carbon trade can help to solve the problem by allowing cities or regions in developed countries to buy the right to pollute some more which is traded off for environmentally-friendly projects preferably in developing countries. As to the multi-level analysis, countries (leave alone continents or sub-continents) should not be seen as some kind of macro regions which is outright ridiculous for example in the case of China. But even small countries such as the Netherlands are too complex to be treated as one region as one has learned only recently.
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