.Describe and explain the terms free-riding, lock-in effects, and uncertainty, and how they relate to climate change.

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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