The Intergovernmental Panel on Climate Change (IPCC) recent report state "It is unequivocal that human influence has warmed the atmosphere, ocean and land. Widespread and rapid changes in the atmosphere, ocean, cryosphere and biosphere have occurred". Many countries, even before this report, have introduced either a carbon tax or an emission-trading scheme (ETS) to reduce pollution. Graph and explain how the carbon tax and ETS differ. 3 Marks
Why is COVID vaccine a good that has positive externalities? What can the government do in regards to a good with positive externality? 2 Marks
