The assignment consists of questions which are based on the book: Wagner, G., & Weitzman, M. L. (2015). Climate shock: The economic consequences of a hotter planet. Princeton University Press., and a review of this book by William Nordhaus; A New Solution: The Climate Club. Be sure to read the questions carefully and make sure you answer all of the questions presented! For this assignment, additional references are not necessary and not recommended to have. However, if you decide to obtain information from other sources you should use the correct referencing. For this, we recommend using the APA, also known as the Harvard style. Assignment questions Assignment questions Questions based on Gernot Wagner and Martin Weitzman’s book “Climate shock: The economic consequences of a hotter planet”. Chapter 1 1.Describe and explain the terms free-riding, lock-in effects, and uncertainty, and how they relate to climate change. 2. Why is climate change the ultimate public policy problem and what is THE solution to climate change? Why is it so difficult to implement in reality? Chapter 2 3. Describe and explain the terms geoengineering and bathtub effect, and how they relate to climate change. 4. What is the major pollution problem of climate change? What are the solutions for reducing such pollution problems (name two solutions)? Discuss why these solutions would be workable through the bathtub effect. Chapter 3 5. Describe and explain the terms climate sensitivity, fat tail, and low beta, and how they relate to climate change. 6. What are the estimated economic costs of global warming? Can we trust these estimates at higher average temperature increases? Why/why not? Are the current estimates of the optimal carbon price too low or too high? Explain and relate to the “cost of the tails”. Chapter 4 7. Describe and explain the term willful blindness, and how it relates to climate change 8.Why does standard cost-benefit analysis fall apart when we try to put a sufficiently high price on carbon to avoid a catastrophe?
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