What makes climate change an economic problem? And if it is, how should policy deal with it? Your answer should include reference to at least three of the following aspects of the problem: a) Climate change as an externality b) A carbon tax vs. cap and trade c) Cost-benefit analysis d) Assessing costs to future generations e) Environmental dynamics

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 13SQP
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What makes climate change an economic problem? And if it is, how should policy deal
with it?
Your answer should include reference to at least three of the following aspects of the
problem:
a) Climate change as an externality
b) A carbon tax vs. cap and trade
c) Cost-benefit analysis
d) Assessing costs to future generations
e) Environmental dynamics 

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