Global climate change is a public good, as it is both non-excludable 

Global climate change is a public good, as it is both non-excludable and non-rival. The problem causing climate change is the build-up of carbon in the air. While there are many proposals to cut emissions (not only tax petroleum, but tax beef), the real problem is the build up of carbon in the air

Global climate change is a public good, as it is both non-excludable

Global climate change is a public good, as it is both non-excludable and non-rival. The problem causing climate change is the build-up of carbon in the air.

While there are many proposals to cut emissions (not only tax petroleum, but tax beef), the real problem is the build up of carbon in the air (See https://www.esrl.noaa.gov/gmd/about/theme1.html for some discussion, and the related site https://www.esrl.noaa.gov/gmd/ccgg/trends/ for a little bit of data.

So the real public good question is how to provide incentives to remove carbon from the air. Assume Harris County (the county that contains Houston) is considering development of a policy to help mitigate climate change. One policy proposal is to tax tree removal, and subsidize tree planting.

The other policy proposal is to pay firms to remove carbon using any technology. A recent private company is offering to do so, see https://www.climeworks.com/co2-removal/, another new technology uses batteries, http://news.mit.edu/2019/mit-engineers-develop-new-way-remove-carbon-dioxide-air-1025.

Assume you have been hired by Lena Hildago (the head executive of the county, called a judge) to develop an argument to support one of these two proposals (tax tree removal and subsidize tree planting, or pay firms to remove carbon from the air).

Discuss the pros and cons of using public tax money in Harris County to combat climate change.

Clearly she will be quite interested in economic arguments to support the plan, such as whether it addresses a public good problem.

If she decides to pursue one of these two policies, which should she pick? Why?

Write no more than three pages, double spaced. Use our economic theories on the proper role of government to find Pareto improving policies to assess these policy proposals. Graphically support your arguments (your graphs can be a fourth page).