Why is the mitigation of ghgs characterised
Course:- Macroeconomics
Reference No.:- EM131188960

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Macroeconomics


Reflect: In module 2 the economics of climate change and policy is introduced. In week 4, economic theory relating to externalities and public goods is introduced. It is argued that GHG emissions are an externality in the production and consumption of fossil fuels and that GHG mitigation has the characteristics of a public good. In week 5, BCA of climate change is introduced, including the potential risks and uncertainty. In week 6, the policies of mitigation and adaptation are introduced.

Respond: Use the readings and lecture notes for assistance. (Submit the tutorial to the dropbox by the due date)

1. Why is the mitigation of GHG's characterised as a public good and what is the main implication of this?

2. Assume you are the principal advisor of the Minister for the Environment. The Minister has an upcoming media interview about a proposed carbon tax and would like precise and concise answers for the following potential topics.

(a) In three dot points explain the rationale for the government's intervention to mitigate climate change?

(b) In three dot points explain why a carbon tax is the preferred policy?

3. Write a one paragraph response to the following question. "Why do most economists put their trust in ‘market-based' solutions as opposed to direct government interventions (so called command and control approaches) to mitigate GHGs?"


Verified Expert

The assignment is related to economics of climate change and various policy options.The advantages and limitations of different policy instruments are discussed. A precise comparison between the market based solution and traditional command and control method is also discussed here.

Preview Container content

Global climate change mitigation is an excellent example of global public good. The two key characteristics of public good namely non excludability and non-rivalry in consumption can be applicable to climate change mitigation. If one country gets benefit from reductions in climate change,

it will not reduce other countries benefit from this reduction. Moreover the mitigation efforts cannot be restricted to a particular nation. If one country puts mitigation efforts then other countries cannot be excluded from enjoying the benefits of these efforts though they do not have any contribution to mitigation efforts. The gains from mitigation efforts provide the benefits to all the countries even to those who have not invested into the abatement policies.

Like other public good, mitigation of GHG is vulnerable to free rider problem.Hence economic of climate change identifies the mitigation of Greenhouse gas as a public good. But the adaptation to climate change is referred to as a private good. This is because it only benefits the country that invests onadaptation. Free rider problem is much more limited in case of adaptation.From the perspective of an individual country, mitigation of green- house emission can be considered as a prisoner’s dilemma game.

Put your comment
View Conversion
  1. user image

    I got the paper! Thank you so much , expertsmind. I appreciate how prompt you were in finishing the paper before the due date! Now that is the thing that I call awesome service!

  2. user image

    The lecture slides, required readings and revision questions in Module 2.It is argued that GHG emissions are an externality in the production and consumption of fossil fuels and that GHG mitigation has the characteristics of a public good. Must be answered in your own word.

Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
Consider the political economy, economic, behavioral and biomedical factors that contributed to the epidemiological transition of wealthy industrialized nations and compare
suppose the firm is facing an output constraint - specifically , the maximum allowable output is 480 units - that is Q
The ad shows that Alka-Seltzer Plus fights cough, body aches, runny nose, sneezing and fever, just like Vicks NyQuil does, but it also now can fight congestion, unlike NyQui
How might inequality lead to faster growth or development? How might it lead to slower growth or development? Is progress being made in the fight against poverty? Why or why n
Does this change in the value of the dollar make imports cheaper or more expensive for Americans? Are American exports cheaper or more expensive for importers of U.S. goods in
Prepare a research project about US Trade Deficits. What is Trade Deficit? Looking at the graph, we see that both Total Imports and Total Exports are increasing overtime. How
You know that increasing AD means increasing spending growth, M + v, but now you know that M (growth in M1 or M2, money measures that include checking accounts) depends on
Focusing on how Gross Domestic Product (GDP) is measured through its various components, explain in detail how each of these phases of the 'mining boom' impacts on GDP. Make