“We see lots of stories in the media about the devastating effects of climate change such as more severe floods, fires, and the melting of glaciers. Climate scientists say that these changes are a result of global warming. Economists attribute many of these problems to externalities and market failures. Examine the concepts of externalities and market failure to see how they may contribute to environmental degradation. Your task is to write a paper of between four and five pages (not including the cover and reference pages) explaining how market failure and externalities contribute to environmental problems.
Here are some guidelines to help you organize the paper:
Define externalities and market failure.
Why are profit seeking entrepreneurs usually reluctant to engage in environmental mitigation and in some cases may have an incentive to pollute?
Is the environment a public good?
Is there a role for government to play in environmental protection?
These are just guidelines. You may use them as sub-headings for your paper. Do not try to address each issue individually. Try to weave them into a cohesive paper. Please use APA format and use peer-reviewed sources and sources from the LibGuide that the librarian will create for you. This is an economics class, do not spend much time writing about the science of climate change. I urge you to read Chapter 10 to get a basic understanding of “Externalities” and “Public Goods” before you start the research.
You must refer to at least five references. You may cite the textbook as a source, but it does not count as one of your five references. Be sure to do a grammar and plagiarism check before you submit your paper. I suggest that you have your paper reviewed by someone at the Writing Center before you hand it in.”
