Please read assigned articles and post comments on two of the questions by Monday, Feb. 15 if you have not already done so.
ECON2505 Env Econ, SP2016TuesD227
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Please read assigned articles and post comments on two of the questions by Monday, Feb. 15 if you have not already done so.
The OpenLab is an open-source, digital platform designed to support teaching and learning at City Tech (New York City College of Technology), and to promote student and faculty engagement in the intellectual and social life of the college community.
3. 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
– Neo-Keynesian doctrine considers economic growth only from the point of view of demand side. They assume that regulations on supply-side have very little overall effect, whereas consumer demand dictates how companies invest money.
– Neo-Keynesian economics implies that wealth should be equally distributed. Opposing neo-classical theory, Neo-Keynesian economists focus on equitable distribution instead of overall efficiency.
– “Neo-Keynesians prefer a command and control approach that sets rules on the market (regulations) and provides subsidies”
6. Describe the policy advocated by the IETA and why they believe this policy to be effective.
Cap and Trade policy, introduced by IETA, sets an overall emission cap, allowing companies to adjust their contribution to the world pollution. The goal is to meet the cap without affecting an economic growth.
– The goal is very strict and must be met, there is no way around it.
– It is cheaper than other alternative methods.
– Cap and Trade can be easily extended internationally.
– It is strict, but offers room for flexibility at the same time.
1. According to Atkinson and Hackler, what do neoclassical economists view as the most effective policy in addressing the challenges of climate change?
According to Atkinson and Hackler, neoclassical economists think that maximizing allocative efficiency is the best way to address the challenge of climate change. It provides economic growth. Society needs available resources to get the maximum net benefits. So, the money society willing to pay for the product equals to marginal cost. It creates equilibrium in the market by equaling supply and demand. It also increases the surplus for both consumer and producer.
Neoclassical economists suggest setting up a tax on carbon can result in an effective way of addressing the climate challenge.
2. What assumptions does neoclassical economics make about human behavior? Are these assumptions realistic? Explain
According to neoclassical economists, human take rational measures to achieve self-profit and that maximize public interest. The assumptions have a great chance of being realistic. Because people always think of their own benefits and they will take any measures to maximize their self-interest. When a number of people can maximize their self-interests it all adds up and society gets benefited by the profits of each individuals.
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.