Question

Scientists are convinced that the burning of fossil fuels is contributing to global climate change, which will harm future economic growth.

2. How would a mainstream economist explain the choice of whether or not to devote resources to renewable energy?

Answer 1

It can be pointed out that according to a mainstream economist if burning of fossil fuels depletes the environment then it would take in more expense in order to clean the environment and after that carry on the procedure and according to a mainstream financial expert if the additional expense involved in cleaning up the environment is more than that of producing renewable energy then it can be discussed that from the production possibility frontier where he has two alternatives one is generating renewable energy and the other is cleaning the environment due to the damage caused by the burning of fossil fuels he would choose to generate renewable resource because the relative cost is lower and if not he would continue to burn the nonrenewable fuel sources on the whole and in this way he would choose whether to dedicate the resources to renewable resource.