Illustrate the potential economic and financial effects of climate change

please help me with the questions below: Explain why it is difficult to estimate the value people place on environmental goods, thebenefits they receive from cleaner air and other services of nature. How might you calculate WTP or MWTP for an environmental good? Distinguish between use and non-use value.

Left to its own devices, a free-market economy will not result in the level of environmental quality that people want.  Firms pollute, and people make expenditures without concern for environmental consequences.  We need some level of government intervention to ensure those decisions take account of other people’s concerns.  However, regulation cost tax dollars and is an infringement of liberty. How can we determine how much environmental quality we want and what is the best way of getting it?

What are the two main approaches to tackle the problem of global warming and climate change? Next, compare the two approaches along the following dimension:   Based on the current state of scientific and economic knowledge, which of the two types of policy is most likely to be cost-effective? Does it mean it will be used? Explain.