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Read the attached newspaper article for some background on the issue of climate change in Australia: "Emissions target: Tony Abbott changes political climate"- The Australian, 12th August 2015.
Then use economic analysis to answer the following questions. Answer all questions. Ensure that you use relevant economic concepts (and diagrams, where appropriate) in your answers. Note that general layman or broadbrush journalistic discussions do not constitute sufficient economic analysis.
QUESTIONS:
1. According to economic theory, under what circumstances should a government intervene in issues of climate change?
2. Climate change results from particular human activities in every country across the world. To what extent can government intervention in any individual country such as Australia be effective in combating it?
3. What different public policy solutions are available to an individual government such as Australia's to combat climate change? What are the pros and cons of each?
4. Provide examples of what each of us as private individuals can do to combat climate change in the absence of government regulation. Is this kind of private solution likely to be effective?
Attachment:- Emissions target-Tony Abbott changes political climate.docx
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