Reference no: EM133200739

Assignment:

BRIEF ANSWERS: EACH QUESTION SHOULD BE ANSWERED WITHIN 4 TO 6 SENTENCES.

1. Current efforts are to avoid global warming of 1.5 to 2 degrees Celsius. President Trump thought that in view of the volatility of our climate, this change will pass unnoticed. Please, motivate and explain your position on this issue.

2. Do greenhouse emissions create an externality? If so, how can it be corrected? What is the main problem in reaching an agreement among countries to restrict greenhouse emissions? What does the Coase theorem implies about reaching such an agreement?If China is the biggest polluter, does the Coase theorem say that China should pay more to reduce greenhouse emissions?

3. Main differences between China and the US in terms of their net zero strategy plans. Please, explain.

4. Would you be able to mention some tools of fundamental and technical analysis in trading? Why are they important? Which ones would you use?

5. How would you react to the following statement? Ours is still an overwhelmingly fossil-fueled civilization.

6. What does Elon Musk mean and why he may say (Tesla): My top recommendation for reducing greenhouse gas emissions is a carbon tax.

7. Bonus Question. See the following video byAcciona(an innovative company from Spain). What are the main problems/challenges facing production of solar energy in desserts?

8. Please, explain main findings and projections for the Florida Housing Market as a result of sea level rising?

9. Suppose that this is the value of a tree (in terms of reselling the lumber). When would you cut a tree if the annual interest rate is 19 percent? What about if the interest rate is 40 percent?

Year       Value.         

1            10                        

2            15

3            18                                      

4            20                      

5            21                

6            22

7            23

8            23.5

10. Suppose that today's oil price=20, and the next year price =30. The interest rate is r=.10. Suppose that there are ten units of oil that can be stored. What is the optimal amount of extraction per period (out of the ten units) in the following cases: (i) The marginal cost of extracting oil is constant (the same cost per unit), (ii) The marginal cost of extracting oil is decreasing (say, extracting the first unit will cost ten dollars, extracting the second unit will have an extra cost of nine dollars, extracting the third unit will have an extra cost of eight dollars, and so on), and (iii) The marginal cost of extracting oil is increasing (say, extracting the first unit will have an extra cost of two dollars, extracting the second unit will have an extra cost of three dollars, extracting the third unit will have an extra cost of four dollars, and so on).

11. Why the Hotelling rule may not really work in practice for extracting oil?