Links to Weekly Readings

4 thoughts on “Links to Weekly Readings

  1. Joseph Palaguachi

    1. According to Atkinson and Hackler, the most effective policy in addressing the challenges of climate change is that “economic growth is achieved by maximizing allocative efficiency. When the distribution of resources results in a desired quantity of goods, society receives the highest net benefit. Their theory is that supply equals demand across all markets in the economy. In other words, the price that consumers are willing to pay for the goods being produced is the same or equal to the marginal costs of production.

    5. Innovation Economics offers a more effective framework for addressing the economic realities of the 21st century. As stated in the passage, “none of the three prevailing doctrines offers the kind of economic policy framework suitable to the new economic realities.” There are a few factors that contribute to this issue. First, each doctrine focuses on keeping the economy in equilibrium by adjusting the demand or supply of capital and labor. Another factor concentrates on the macroeconomic aspects such as prices, rather than concentrating on the change of technology that could potentially lead to growth in the economy. The doctrine of innovation economics changes the traditional standards of economic growth. In their eyes the primary factors for economic growth aren’t the independent forces in the economy but the recognition of knowledge, technology, entrepreneurship, and innovation.

  2. RyanM

    1. Neoclassical economists believe that “setting a price on carbon—
    through a carbon tax or cap and trade—is the principal and often sole policy response
    needed to address climate change.”
    2. Neoclassical economists assume that “individuals act in response to
    incentives to rationally maximize their own self-interest, and that the collective pursuit
    of individual self-interest will also maximize public interest.” This is not a realistic assumption because
    human behavior is highly unpredictable and having simplified and general assumptions like
    the neoclassical economists have can not be applied to complex real world problems.

  3. Volha Asadchaya

    1. According to Atkinson and Hackler, what do neoclassical economists view as the most effective policy in addressing the challenges of climate change?

    Neoclassical economists believe that setting a tax on carbon emissions will not only reduce the use of high carbon fuels, but also spur innovation to identify low-carbon alternatives and make current clean energy sources more competitive.

    2. What assumptions does neoclassical economics make about human behavior? Are these assumptions realistic? Explain
    Neoclassical Economists assume that people will always behave to maximize their own interest. I think this assumptions is realistic if review it on a large scale of the total human population. I believe collectively large group of people and even entire nations would more likely to act in self-benefit.

  4. Yuliya

    1. According to Atkinson and Hackler, neoclassical economists believe that imposing a carbon tax and setting the right price for the costs of emissions will improve climate change. Neoclassical economists suggest that adjusting the price will control the demand, therefore reaching allocative efficiency.

    2. Neoclassical economists suggest that “individuals act in response to incentives to rationally maximize their own interests” and that individuals’ actions to maximize self interest will lead to maximizing public interest. These assumptions seem to address the economy while ignoring the importance of making improvements to current policies that address climate change.


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