10.

Question 1

What is an externality?

Answer 1

Question 2

How do we establish social order
How does the market system relate to social order?
How do public goods and externalities relate to social order?

Answer 2

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Question 3

Define
* Social contract
* Hobbesian tradition

Answer 3

Question 4

What is a consumption externality

Answer 4

Question 5

First theorem of Wlefare economics

Answer 5

Question 6

What happens to the general equilibrium when there is an externality?

Answer 6

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Question 7

What has changed in the general equilibrium?

Answer 7

Question 8

General equilibrium with externality

Answer 8

Question 9

What is the first welfare thereorem?
Why is no externalities required for first welfare therom to hold?

Answer 9

Question 10

What is coase Theorem?

Answer 10

Question 11

coase Theorem and property rights

Answer 11

Question 12

What are the properties of public goods

Answer 12

Question 13

Answer 13

Question 14

What is the:
* perfect subsitue case
* Perfect complement case

Answer 14

Question 15

Canonical example:
Assumptions
What is the meaning of the sign?

Answer 15

Question 16

Application of public goods: Security/ Defence
* What is the issue?
* How can this be provided as a public good to solve the issue?
* What do G and γ mean?

Answer 16

Question 17

Application of public goods: Climate change
* What is the issue?
* How can this be provided as a public good to solve the issue?
* What do G and γ mean?

Answer 17

Question 18

What happens in a Nash equilibrium?

Answer 18

Question 19

Answer 19

Question 20

What are the incentives to contribute?
What sort of function is this?
What is the equation?

Answer 20

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Question 21

Answer 21

Question 22

What is the dominant stratergy?

Answer 22

Question 23

What are the implications of this?
What is the range of the benefit of public good?

Answer 23

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Question 24

Assurance game
What is the utility equation?

Answer 24

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Question 25

Answer 25

Question 26

Answer 26

Question 27

Assurnace game on the population level When should we invest and when should we not (equatiojns?)

Answer 27

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Question 28

What are the solutions to the free-rider problem?

Answer 28

Question 29

Lin Ostrom's work

Answer 29

Question 30

What is voluntary cooperation?

Answer 30

Question 31

Is self-interest a reasonable assumption?

Answer 31

Question 32

The game when there is a reciprocals

Answer 32

Question 33

Do penalties work in practice?

Answer 33

Question 34

What is the role of the government?

Answer 34

Question 35

Government reprecutions measures

Answer 35

Question 36

Government subsidisation

Answer 36

Question 37

Direct Government provision

Answer 37

Question 38

Chan et al (2018) Why is international cooperation required to tackle climate change?

Answer 38

* Countries can free-ride on the actions of others so we have international cooperations * Able to address emission sources that are unevenly distributed

Question 39

Chan et al (2018) What criteria can we use to evaluate international climate policy?

Answer 39

* Environmental effectiveness: To what degree do they reduce climate change? * Aggregate economic performance: Cost-effectiveness * Distributional impacts: Benefits and costs for everyone overtime * Institutional feasibility: Ability for the parites in the agreement to implement effort

Question 40

Chan et al (2018) What aspects are important in the design of international climate policy?

Answer 40

* **Strong multilateralism**: High degree of coordination of goals or action among participants * **Harmonized antional policies**: Cooperation to make the design and ambition of national polcies similar to one another relying less of a centralised authority * **Decentralised policies**: Composed topically focused building blocks * **Legal framework**: Legal type, whether commitment is mandatory, the specifcity of commitments and the use of enforcement provisions.

Question 41

Chan et al (2018) Summarise the features and objectives of the 2015 Paris Agreement? Has it been effective? Is it sufficient?

Answer 41

* 10 year national goals for climitae mitigation * Countries have to submit revised NCDs every 5 years * Bottom up nature

Question 42

Altundas et al (2021) Can market forces help reinforce the objectives of international agreements through, for example, the financial sector?

Answer 42

* Banking sector is lending away from polluting firms, as they expect more stringent climate risk-related policies, or increased awarness by banks of climate change related risks.

Question 43

Income distribution

Answer 43