Question

I want atleast 10 lines for each part. Please write your own opinion, dont copy paste.

Qs 1 a.Environmental Economics: How does the scarcity principle apply to the cap and trade system for carbon emissions?

Qs 1 b. Environmental Justice: Do technologically and economically advanced nations have a responsibility to help solve environmental problems in the developing world? Why or Why not?

Answer 1

1a. Scarcity principle rely on shortage of supply correspond with high demand leading to increase in price untill Equilibrium is reached.For cap and trade system of carbon emission the scarcity principle applies since the permits are limited in supply for carbon emissions and once the company is over the cap of their pollution level they need to pay for additional emissions through permits from other companies and as permits are scarce resources their value will reach equilibrium with increase in prices since the demand is higher and this incentivises somenof the company who cany afford permit is to innovate and decrease emissions.

1b.Pollution is the global phenomenon and it affects the total world and there is the well known fact that the percapital emissions are highest in the developed world where as developing nations are growing at the faster rate with the ever-growing need for fuel and increasing emissions which is required by them to bring their population out of poverty and to provide better quality of life to their people but this should also needs to be sustainable so that the environment is not adversely affected , develped nation needs to support the developing nation in their endeavours through technological transfers and help them migrate to renewal resources as they have better means and ways to support the cause as well as they owe this to the world on account of unchecked exploitation of natural resources in past centuries. Hence, this should be collective responsibility of both developed and developing nation.