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According to Arrow, “We are much better to act to reduce CO2 emission substantially than to suffer and risk the consequences of failing to meet this challenge.” – in light of the article and based on...

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According to Arrow, “We are much better to act to reduce CO2 emission substantially than to suffer and risk the consequences of failing to meet this challenge.” – in light of the article and based on your own research, please explain why he suggests so. Specifically, what sources of market failure are present? Apply the abstract possible solutions to this problem of global warming. [8 marks]
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MPE 781- Economics for Managers Trimester 2, 2017 Assignment: Economics Case Study Due on the 5th of September (11:59 pm), 2017. I.AssignmentOverview: This assignment is based on an article pub- lished inThe Economists' Voice titled `Global Climate Change: A Challenge to Policy', by a Nobel laureate Kenneth J . Arrow , in 2011. The article is already attached to this assignment question. Please read the article care- fully before attempting this exercise. You will also need to draw on other resources available through the library as well as external resources. Please note that you need to provide clear references for your sources when citing research and data. II. Learning Objectives: This assignment is designed to encourage you to think about the application of concepts learned in this unit in a real world scenario. This assignment, indeed, is interesting as it explains the 1 mechanism that leads to global warming and its impacts on our economy. 1 Note that the article refers to this phenomenon as global warming but in recent years, the scienti c community and journalism have begun to refer to it as climate change, which is the term you may be familiar with. You may use either term, but use only one. 1Furthermore, this assignment also addresses the challenge that we face to implement e ective economic polices to reduce the magnitude of impacts of global warming. We hope that this assignment will expand the horizon of your thoughts. III. Assessment: Your score on this assignment contributes towards 40% of your nal score for this unit. Your assignment will be graded on your use of appropriate economic theory and concepts; relevant diagrams and clarity of exposition and overall quality of your answers. Although you can work in group, this is not a group assignment and you must submit answers individually. IV. Submission: This assignment must be submitted electronically on CloudDeakin (CD) Dropbox area by 11:59 pm on the due date. No hard copy submission will be...

Answered Same Day Dec 27, 2021

Solution

David answered on Dec 27 2021
120 Votes
1. We humans are always say, save the earth, but it is not about saving the
earth. It is about to save the humans.
Because the earth will be there as always. But whatever man is doing now, he
have to harvest in the future. So basically we are going to see in this article
that how man is fighting with the changing climate today.
According to the daily news and researches, changing climate is a very serious
global problem as it wants a serious call of action. The serious climate impact
which lead to the increase in the global economic cost and so the risks.
Changing climate is a serious threat as it impacts millions people life,
environment, food, drinking water, homes etc. Therefore if we do not do anything
to take the action now then the overall cost and risk will get increased about 5%
of global GDP every year and this damage will increase up to 20% of GDP and
more. But in case if we take the actions there will be a only loss of at least 1% of
GDP every single year which is beneficial.
Industrialization investment that is going to take place in the next 10-20th century
will have a tremendous effects on climate. These actions could create a serious
environmental as well as social problems that it will become impossible to reverse
these changes after a point of time. The change is only possible when happen on
international level. And not with just short term goals but with the long term
goals also. And we should start this from our home and then on the
egional,national and international level.
Potential global climate change and its impact
If no actions will be taken faster to reduce the emissions, the concentration
(available ca
on monoxide, ca
on dioxide, chlorofluoroca
ons) of greenhouse
gases in the atmosphere could reach double its pre-industrial level as early as
2035, therefore global average temperature could rise of over 2 degree Celsius.
So there is a maximum possibility or 50% possibility that global temperature will
increase up to 5%.
2. The saying that “We are much better to act to reduce co2 emission
substantially than to suffer and risk the consequences of failing to meet
this challenge” said by ARROW, examines that he rather wants to say in
simple form that it’s better to do something instead of siting and seeing
that what is going to be next to be exact. It does not matter that whether
our goals are going to work or not. The thingis that we shouldtake action
now before it’s too late.
A
ow examines that as our atmosphere is made up of nitrogen, oxygen, argon,
ca
on dioxide, methane. And here are other gases also but in very small quantity
called traces. As these traces are getting transparent to the radiation in the visible
part of the spectrum but abso
ent at lower frequencies like infrared. As these
gases abso
the outgoing radiation and increase the temperature of the earth
called greenhouse effect.
Basically greenhouse effect is when atmosphere allows external harmful rays to
enter into the atmosphere but do not allow the internal heat to go outside.
So with the increase in the growth of the industry co2 will continue to accumulate
and leads to rise in temperature.
The cu
ent level of CO2 (plus other greenhouse gases, in co2 is equivalents) to
about 430 parts per million (ppm), compared with 280 ppm before the Industrial
Revolution. With the present and growing rate of emissions, the level could reach
550 ppm by 2035.
The countries which are not developed and are in their developing stages cannot
set up industries now. As it will lead to increase in temperature. But the countries
like China who have their economic growth very well developed can buy ca
on
credits and does emission a much as they want.
US has several industries as it has passed out from its industrial stage. And now
also is the second largest emitter of ca
on dioxide in the world. But what about
developing countries?
This is thus almost twice the preindustrial level and a level that has not been
eached for several million years. Be it any situation we should
ought down the
80% below the cu
ent level. If we do it later, and with the slower than expected
or if policy makers fail to make the emission reduced whenever and however it is
cheapest. Then it would be very difficult and costly to stabilize the opportunity of
what we have today.
So instead of saying a big NO to developing countries which are in their pre-
industrial developmental stage government should make out some strategies
which could help in the reduction of ca
on.
The market failure sources which are presented are very obvious from which
some are:
- Implication for agriculture (negative effects captures the places where moisture
is the limiting factor and especially in the tropical regions)
- Rise in sea level (which will washed out the small...
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