Outline the key elements of the challenge of climate change policy from an economic perspective, highlighting (i) the stock/flow nature of the problem, (ii) the dynamic nature of the problem, (iii) the international coordination challenge, and

Which of the following would be identified as a social force in an environmental scan?   Multiple Choice ____ a new consumer protection law ____ a delay in young couples marrying and having children ____ an introduction of advanced technology ____ a decrease in consumer incomes ____ a new international firm exporting to the United States

12) Detail the workings of the ‘new consensus’ 3-equation model.

The climate policy toolkit has, to-date, mostly focused on demand side policies (i.e. policies that affect the pollution demand curve), some of which are ‘command-andcontrol’ and others are market based (e.g. cap-and-trade schemes, carbon taxes). (a) Explain what is meant by command-and-control in terms of a demand side climate change policy. What are the pros and cons of this as a policy option? (b) Using a diagram, explain how a carbon tax could help reduce pollution.