6.03 Research Chart

Research Chart
Subject	Guiding Questions	Your Responses
Consider all possible solutions or alternatives.	Give three possible solutions to the economic issue you are investigating.         Why would some people oppose the solutions you have chosen?	To reduce the effects of climate change in Florida, I propose that we should mandate a carbon tax, provide solar panels or green roofs for all new buildings and really crack down on harmful chemicals and prohibit the use of them if they are causing serious danger to the Earth.           These solutions would definitely not have the support of all people because, unfortunately, politics is involved with climate change. Some people don’t believe that global warming is real so they won’t care about efforts to reduce it. Also, these solutions can be pretty costly and have some externalities that not all people would be happy about.
Calculate the consequences of these solutions- both intended and unintended at all levels of the economy.	What positive or negative externalities does this issue present at each sector of the economy? Refer to your circular-flow diagram.         What incentives do individuals, businesses, and government have to act on each possible solution?         What are the externalities, both positive, and negative, that could result from each possible solution?	With the introduction of solar panels to all new buildings we could definitely give business to the companies that produce them, so it could be a positive externality to that product market. However, for the businesses that have to spend the money on them, they might be seen as negative. These businesses may have to borrow money from the banks to pay for these solar panels (financial market). But solar panels could greatly and positively affect conservation efforts, a positive externality. The addition of these solar panels can provide jobs, a positive externality for the factor market. A carbon tax and stricter chemical regulations would have negative externalities on the businesses that rely on carbon use and chemicals, but it would definitely be positive for the environment.           Individuals have the incentive of having a better and cleaner Earth for the future. Businesses can make money off of the sale of solar panels, creating jobs. Also, although solar panels are expensive, businesses will save money in the long run with the implementation of them. If the government mandates all of these points, they will be able to create jobs and stimulate the economy and better our Earth.           I basically already stated all the negative and positive externalities in question 1. Basically, carbon tax and chemical regulations would not be so great for the businesses that use them because they will have to either find other alternatives or spend more money. But they will be great for the environment! Solar panels may seem like a waste of money for businesses at first, but they actually will save the businesses money in the long run. Solar panels will also have a positive effect on the environment.