A MICRO economic Analysis of Market Forces and Global Warming - a study of EXTERNALITIES.
Investigate the technical, economic, and political feasibility of market-based climate policies, and examine alternative designs of carbon taxes, cap-and-trade, and clean energy standards
Project
The purpose of this project is to create a productive assignment to undertake basic research into aspects of important economic concepts. It is also important to follow clear instructions of the presentation and structure of the report.
STUDENT LEARNING OUTCOMES related to this assignment:
Upon completion of this research, students will be able to:
A. Demonstrate a basic understanding of
i. consumer choice over goods
ii. production choices inputs, outputs and prices
B. Interpret the interaction between producers and consumers in markets and the efficiency properties of these interactions
C. Analyze market structures
Expected Outcomes:
Each student) will produce the following outcome of no more than 4,000 words, minimum 3,000 including a minimum of 5 references.
Topic and Task Requirements:
1) The theoretical framework is related to Demand and Supply market forces related to externalities and the impact(s) on the economy. This analysis must be theoretically illustrated using this basic model.
2) The report must make clear references (citations) based on recent articles which clearly show evidence of research.
3) The report must be written in Report Format, ie structured with suggested subtitles: Introduction, background, theory, analysis, results, conclusion, references, Appendix.
Coversheet: names, student number, date, title, course unit, word count
Ariel, titles font 14 bold, text font 12, Ariel, page numbers (not cover sheet). 1.5 spacing between lines, double between paragraphs. All tables and graphs labelled, and clearly and professionally illustrated. No more than 4,000 words including references. Identify word count on cover sheet.
The objective report must include recent research and economic reasoning.
Debate continues in the United States, Europe, and throughout the world about whether the forces of the marketplace can be harnessed in the interest of environmental protection, in particular, to address the threat of global climate change.
In an essay that appears in the Spring 2012 issue of Daedalus, the journal of the American Academy of Arts and Sciences, my colleague, Joseph Aldy and Robert Stavins take on this question.
In the article - "Using the Market to Address Climate Change: Insights from Theory & Experience" they investigate the technical, economic, and political feasibility of market-based climate policies, and examine alternative designs of carbon taxes, cap-and-trade, and clean energy standards.
https://www.hks.harvard.edu/m-rcbg/rpp/Working%20papers/RPP_2011_05_Aldy_Stavins.pdf
4) The report must address the following issues:
a. Provide a summary/abstract of the overall paper: its purpose, structure and conclusion
b. Describe the variety of climate change policies the paper describes to promote efficiency of energy and less pollution and real-world experiences with policies that price externalities
c. Describe and illustrate externality pricing and use a basic supply and demand graphs/analysis
d. What does the future hold for the use of market-based policy instruments, whether for climate change or for other environmental problems.
Precise data is not needed for the theoretical analysis, but specific events impacting on the topic must be documented underlining the efficacy or not, of the model.
Assessment
This project forms a major part of the assessment for this course.
The deadline for submission is no later than Sunday 15th January at the beginning of class. Hard and soft copy with coversheet. No more than 4,000 words. Identify word count on cover sheet. Late work will be penalized.