The paper discusses the effectiveness of Kyoto Protocol-inspired policies in addressing global warming from a supply-side perspective. It argues that reducing fossil fuel demand alone is insufficient if suppliers do not react by reducing carbon extraction. If suppliers continue to extract and consume carbon regardless of price changes, demand reductions by Kyoto countries will be ineffective, as they will simply depress the world energy price and induce other countries to increase their energy consumption. The paper highlights the importance of decoupling carbon emissions from energy production, which is challenging due to the chemical laws governing fossil fuel combustion. It also examines the market failure caused by global warming, where the current generation's actions can harm future generations. The analysis considers the impact of insecure property rights and the greenhouse effect on resource extraction, concluding that these factors lead to overextraction. The paper provides a simplified graphical interpretation to illustrate the equilibrium paths in the presence of global warming and stock-dependent extraction costs, showing that the Pareto efficient path is steeper and leads to lower current extraction volumes compared to standard analysis.The paper discusses the effectiveness of Kyoto Protocol-inspired policies in addressing global warming from a supply-side perspective. It argues that reducing fossil fuel demand alone is insufficient if suppliers do not react by reducing carbon extraction. If suppliers continue to extract and consume carbon regardless of price changes, demand reductions by Kyoto countries will be ineffective, as they will simply depress the world energy price and induce other countries to increase their energy consumption. The paper highlights the importance of decoupling carbon emissions from energy production, which is challenging due to the chemical laws governing fossil fuel combustion. It also examines the market failure caused by global warming, where the current generation's actions can harm future generations. The analysis considers the impact of insecure property rights and the greenhouse effect on resource extraction, concluding that these factors lead to overextraction. The paper provides a simplified graphical interpretation to illustrate the equilibrium paths in the presence of global warming and stock-dependent extraction costs, showing that the Pareto efficient path is steeper and leads to lower current extraction volumes compared to standard analysis.