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EMDV8080 International Climate Change Policy and Economics

Questions:

1.Explain the concept of an externality. How can putting a price on pollution correct for an externality? 
 
2.Why is the mitigation of GHG’s characterised as a public good and what is the main implication of this?

3.Role play, where you are the principal advisor of the Minister for the Environment. The Minister has an upcoming media interview on a new policy to reduce greenhouse gas emissions. The Minister requires a precise and concise answer for the following question. 
What are the reasons for the government to have a policy to reduce emissions? (Use dot points to present the information to the Minister  

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