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Assignment
1) The problem of climate change is argued to represent the tragedy of the commons, where free-riding is prevalent. Explain how the issue of climate change exemplifies the issue of free-riding. What are the possible tools to decrease free-riding in the case of climate change? Which are the most efficient and why?
2) The issue of climate change can be viewed as the biggest market failure of our times. Would you agree with this idea or not? Explain your position.
3) Carbon pricing through either carbon tax or cap-and-trade policy tools are favoured as the tools to mitigate climate change. Explain how both instruments can help governments reduce GHGs emissions. What are the differences and similarities between those two tools? Which tool do you consider to be more politically feasible in the United States and why?
4) Over the last twenty years, business actors started to be more active in responding to the challenge of climate change. Would you agree with this statement or not? Support your argument with examples.
5) The overall trend in environmental policies as well as in the area of climate change actions is toward voluntary-based, bottom-up approaches. Explain this trend. Which accountability mechanisms can help improve the performance of private actors and governments in mitigating climate change?
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