question archive Using this link about fossil fuels increasing climate change: https://www
Using this link about fossil fuels increasing climate change: https://www
Subject:EconomicsPrice: Bought3
Using this link about fossil fuels increasing climate change: https://www.cbc.ca/news/canada/british-columbia/climate-change-lawsuit-1.3952498
1. Identify the market failure in the article, and explain in detail how the situation fits the characteristics of that market failure such as (Negative externality, Positive externality, Underprovision of a public good, and Overuse of a common property resource)
2. Draw a supply and demand diagram for the good or resource in the article and use the diagram to show why the current situation is inefficient. Explain in detail what the diagram tells us about the situation.
3. Describe a policy solution that could be (or possibly is being) used to address this market failure. Explain how it works, and how it solves the problems associated with this market failure. ( Using one or two of these policy solutions; Pigouvian subsidy, Price floor, Production quota, Pigouvian tax)
4. Discuss how the principles of Dr. Trosper's discussion of how communities work together to function well could apply to the situation? How could they possibly present an alternative way of addressing this market failure or strengthen the solution that is already being used?
