Sample Economics Paper On Application of Microeconomics

Homework Question on Application of Microeconomics to Climate Change Policy

Guidelines for Paper:

Article: McKibbin, Warwick J. and Peter J. Wilcoxen, “The Role of Economics in Climate Change Policy”, Journal of Economic Perspectives, Spring 2002.

It is linked at my website: http://personal.stthomas.edu/jwvincent

Tasks:

  • Find at  least two other economics references on the topic. Good places to look are rff.org and — rfe.org)
  • Identify from the main article and/or the other references at least three ways in which microeconomics is applied to the issue of climate-change policy.
  • Examples of microeconomics might be marginal analysis, emissions taxes, tradable emissions allowances (permits), present value, marginal cost, marginal benefit, opportunity cost, etc.
  • Describe these uses of microeconomics in a 3-4 page paper.

Homework Answer on Application of Microeconomics to Climate Change Policy

Climate change is one of the global menaces that need to be analyzed. The advent of reduced productivity, change in the long terms weather patterns and the notion of increased food insecurity are some of the issues that climate change brings. In microeconomics, various theories and lines of thought have been postulated to understand the cause and effects of climate change with a keen concern of how best we can leverage from this global menace. This paper looks into how the discipline of microeconomics has been used to understand the precepts of climate change clearly.

We would look into a marginal analysis, the present value analysis, the issue of emission taxes, the marginal costs and benefits, the opportunity costs and lastly, the notion of tradable emissions allowances. Climate change has been spearheaded by the emission of highly toxic gasses into the air which destroys the ozone layer.  It is always the responsibility of various production companies to ensure that they do not pollute the air.

Homework Help

This rule of law has since been replaced by the government allowing these companies to emit these gasses at a fee which is the emission tax charge. It is however quite detrimental to emit such gasses into the environment since it causes a high level of pollution which has many effects on the economies (McKibbin, Warwick and Peter, 4).  The externality that emanates from these emissions does not only have the effect on the health of the citizens, but it also has the effect on the productivity of same.