xplain what might be the reasons for the implementation of such an activist policy. (Answer this question with the arguments of your main course book, (Krugman; Obstfeld; Melitz; 2015)) b) Describe how the Environmental Kuznet curve works. Let's assume that there is a green-friendly technology transfer from developed countries to less developed countries in order to achieve the goal of a decrease in emission, then what will happen to the curve?

Microeconomics A Contemporary Intro
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ISBN:9781285635101
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Chapter17: Externalities And The Environment
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5) Suppose that an international agreement requires exporters to reduce their carbon emissions. In this context, government subsidies are provided to R&Ds that will enable green-friendly production in exporting industries that produce high-tech.
a) Explain what might be the reasons for the implementation of such an activist policy.
(Answer this question with the arguments of your main course book, (Krugman; Obstfeld; Melitz; 2015))
b) Describe how the Environmental Kuznet curve works. Let's assume that there is a green-friendly technology transfer from developed countries to less developed countries in order to achieve the goal of a decrease in emission, then what will happen to the curve?

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