Answer to Question #54740 in Microeconomics for Yazan

Question

According to economic theory, under what circumstances should a government intervene in
issues of climate change?

Answer 1

Climate change is caused by factors such as biotic processes, variations in solar radiation received by Earth, plate tectonics, and volcanic eruptions. Certain human activities have also been identified as significant causes of recent climate change, often referred to as "global warming".
Singapore has released a national climate change strategy document which outlines the country's plans to address climate change through a whole-of-nation approach.
Local Governments currently face few regulatory obligations to address climate change. Regulatory frameworks that address issues related to climate change are listed below.
1) The National Greenhouse and Energy Reporting Act
2) Carbon Pollution Reduction Scheme
3) Building Code of Australia (BCA)
4) State Planning Policy 2 Environment and Natural Resources
5) State Coastal Planning Policy
6) Local Government Water Conservation Plans