Assignment 1

1.According to the authors, neo-classical economists believes that the most effective way to impede challenges face by climate change is by charging emitters full cost of emission of greenhouse gases.

2.Neoclassical economist assumes according to Adam Smith, people want to maximize their own gains, needs, thus to be led by an invisible driving force that will promote the public interest as a collective whole of individuals.  According to the authors, it’s true in most cases of generalization, but untrue in the researches done on human behaviorism.

 

1 thought on “Assignment 1

  1. Anelsy R

    1) Neoclassical economists believe that the growth economic can accomplish with the interaction of the firms, and the consumers in markets determined with the determination of the signals prices, as a consequence, they stand out as interest rates, currency values, inflation and other monetary factors that determine the value of capital and labor more pricing mechanisms. they see the companies that produce the Green Greenhouse gases like a conventional pollution market failure because they do not take responsibility for the damage at the environment.

    3) the main argument that the neo-Keynesian economists say is that economic growth is a result of business investment, government expenditures and consumers due to demands for him come and they produce and produced which means that the Govier investments invest, and grow consumer demand. unlike the Neoclassical economics who focus on maximizing efficiency while preferred Keynesian policies that benefit the welfare and strives to distribute economic growth rather than improving activity, one of the policies that are as efficient in fight against climate change is to provide subsidies to the production of clean energy in order to strictly regulate the production of GHG.

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