Reading assignment for Wednesday Feb. 10

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 11:59 pm Feb. 8.

Atkinson-etal-2010-econ-climate-change_theories

Why Emissions Trading is More Effective Than a Carbon Tax_session1

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:

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

2. What assumptions does neoclassical economics make about human behavior? Are these assumptions realistic? Explain

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

4. What are the principal problems the authors have with both neoclassical and neo-Keynesian economic proposals for resolving climate change? Clearly explain.

5. 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 21^st century.

6. Describe the policy advocated by the IETA and why they believe this policy to be effective.