question 88.9

Class project, ECO 3302

Fall 2021

Due on Thursday, 12/2

Your answers should be brief and concise, using the correct terminology. Treat the problem as you would an exam problem, with 3 parts – provide a short explanation of what’s happening, as the problem asks for. Stick to the problem - address the relevant points, but don't add extraneous information.

Feel free to use appropriate diagrams or equations. You may use your text, posted outlines, and your own notes.

1). Briefly explain how the differing assumptions of time preference affect the

policy prescriptions produced by the Nordhaus and Stern models.

2). Identify and briefly describe two revisions made in more recent economic global

climate models, compared with earlier (those of Nordhaus, for example) models.

3). Briefly explain what the social cost of carbon (SCC) represents, and how

economic theory predicts a tax based on the SCC would affect production of

CO2 emissions.