Reading assignment for Monday Feb. 8
Read the following articles, 1. Economic Doctrines and Approaches to Climate Change Policy by Atkinson and Hackler, (pgs. 1 – 9; 15 – 16; 22 – 23 and 33 – 36) and 2. Why Emissions Trading is More Effective than an Carbon Tax by the International Emissions Trading Association and comment/answer any two of the following questions by 12 noon Feb. 7.
In pages 1 – 9, the authors discuss their views of how Neoclassical, Neo-Keynesian and Innovation Economics would design economic policies to address the issue of climate change. Discuss your answers to any two of the following questions:
- According to Atkinson and Hackler, what do neoclassical economists view as the most effective policy in addressing the challenges of climate change?
- What assumptions does neoclassical economics make about human behavior? Are these assumptions realistic? Explain
- According to Atkinson and Hackler, what are two or three arguments made by neo-Keynesian economics? What policy does neo-Keynesian economics see as most effective in addressing the challenges of climate change? Describe
- What are the principal problems the authors have with both neoclassical and neo-Keynesian economic proposals for resolving climate change? Clearly explain.
- The authors discuss their theory of “Innovation Economics.” What reasons do authors cite as to why Innovation Economics offers a more effective framework for addressing the economic realities of the 21st century.
- Describe the policy advocated by the IETA and why they believe this policy to be effective.