Based on what you saw in the videos about internalizing externalities, do you think that the "leaving it to the market" approach (i.e., market-based solutions, such as government-imposed incentives toward renewable energy initiatives) is sufficient to transition away from fossil fuels and a linear economy as we try to minimize the already visible impacts of climate change? Or, do you think that a command and control approach is warranted in this case? Explain.
Based on what you saw in the videos about internalizing externalities, do you think that the "leaving it to the market" approach (i.e., market-based solutions, such as government-imposed incentives toward renewable energy initiatives) is sufficient to transition away from fossil fuels and a linear economy as we try to minimize the already visible impacts of climate change? Or, do you think that a command and control approach is warranted in this case? Explain.
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 1PA
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Based on what you saw in the videos about internalizing externalities, do you think that the "leaving it to the market" approach (i.e., market-based solutions, such as government-imposed incentives toward renewable energy initiatives) is sufficient to transition away from fossil fuels and a linear economy as we try to minimize the already visible impacts of climate change? Or, do you think that a command and control approach is warranted in this case? Explain.
Note: I am not judging your position, but am looking at how you support your position given the fundamentals of command and control vs. market-based solutions given our current climate crisis.
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