Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

Question

Quizplus · Accepted Answer

Economists generally agree that a carbon tax or cap and trade system are efficient market-based incentives to address climate change. Tax rebates to those causing negative externalities could be viewed as a form of subsidy, and a reduction in gasoline purchases or a reduction in the price of green cars and appliances would not address the root cause of the problem, which is the emission of greenhouse gases.

Economists Mostly Agree That the Problem of Climate Change Necessitates