given by P = 14 – 0.39q (b) the marginal cost of extraction of oil is constant at $2 per unit (c) the discount rate is 1% (d) the marginal cost of renewable energy is $9, where c

For each source of renewable energy discussed in this chapter, what factors stand in the way of an expedient transition to it from fossil fuel use? In each case, what could be done to ease a shift toward these renewable sources? Would market forces alone suffice to bring about this transition, or will we also need government? Do you think such a transition will be good for our economy? Why or why not?

Most of Canada’s farming is done in the Tundra and Boreal forest region. a) What could happen to the size of each of these regions if atmospheric carbon dioxide doubled?   b) What does this suggest about Canada’s future agricultural potential?   c) Why might the picture be nowhere near as positive as your answers to parts b) and c) would suggest?

Assume that a country is endowed with 24 units of oil reserve.   (a) the marginal willingness to pay for oil in each period is given by P = 13 – 0.56q(b) the marginal cost of extraction of oil is constant at $3 per unit(c) the discount rate is 1%(d) the marginal cost of renewable energy is $9, where c<d<a.  How long will it take, for a country to transition to a renewable energy source?