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Economic Solutions Towards Environment Problem

Free Essays of Economics The vision of the climate change from the position of economics deploys economic tools, and, therefore, assumes cost and benefit analysis. The possibility to prevent the climate change could be considered as a benefit whereas the economic expenses of the fossil fuel, in addition to the greenhouse gas reductions, are surely considered as the costs implications. Such implications have a strong impact on the level of GDP for each country, and they depend on the discount rates of the potential climate change, as well. Besides, the impact of loss of people would definitely lead to the problems in terms of economy and government regulations. In fact, such losses could have a huge influence on the economic models, as well as the GDP changes for each country, which could have a strong impact on the future generations and the global ecological system, at large. Thus, the cost-benefit approach could be considered as a useful means of analysis of climate change, in addition to its outstanding value for evaluation of the melting ice in Arctica.

There are different policies that address the global climate change in terms of its prevention. The most popular policy is aiming to negotiate the difficulties with the carbon tax, as well as the impact on the fuels with the subsequent carbon releases. Such a situation could have another impact on the economy from the perspective of taxes and the overall position of the economy. Alternatively, the revenues generated from such a scenario could be used to help people with the minimal income as this will have the most negative impact on such families in terms of goods and / or services. At the same time, it is important to address the policy of carbon emissions, as well as the approval for its substitution. In other words, the companies that have a relation to the emissions of carbon could be retailed. Therefore, both types of policies have economic benefits in terms of effectiveness and cost of political participation. Alternatively, the government could consider transferring the sponsorships not towards the fossil fuels but rather the alternative means of energy. Such an approach could be helpful in terms of the effectiveness of the energy consumption as well as the potential benefits of the unconventional technologies of energy utilization. Thus, the combination of these policies could be utilized towards the global climate change. Besides, such an approach could help to manage the barriers of other policies in the government by means to recommend best economic solutions.

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