CLIMTE CHANGE
In decades our planet’s climate has been changing at an alarming rate. Climate change and global warming are rapidly increasing, but western nations’ dependency on the economy and influences of capitalism are making these issues worse. It is increasingly apparent that our dependency on the economy and the want for profit is considered more important than the current state and preservation of the planet that we inhabit. Therefore, economists gave different proposals for this problem.
First, some economists show that the best way to deal with climate change is that limits carbon emissions by putting a price on them that reflects the environmental damage they cause. Anyone who dumps pollutants into a river, or emits them into the air, must pay a sum proportional to the amount dumped. The emission of carbon dioxide is a classic negative externality — the “biggest market failure the world has ever seen,” in the words of Nicholas Stern, the author of a report on the subject for the British government. When there are “negative externalities”, what we should do. In order to solve negative externalities is to make rules that prohibit or at least limit behavior that imposes especially high costs on others. Also, we should have policies to discourage activities that generate negative externalities. For example, cars were required to meet emission standards for the chemicals that cause smog, factories were required to limit the volume of effluent they discharged into waterways, air and so on. This proposal makes good results; air and water became cleaner in the decades.
Second, a carbon tariff would be a tax levied on imported goods proportional to the carbon emitted in the manufacture of those goods. The United States, China are the world’s largest economy, which burns much more coal per dollar of gross domestic product than others. It is unfair if emissions