tag:blogger.com,1999:blog-2555123713188257297.post4091798676229606698..comments2023-12-14T21:55:11.213-05:00Comments on Mitchell Langbert's Blog: Exchange on Costs of Middle East Oil ImportationMitchell Langberthttp://www.blogger.com/profile/00722335216553899790noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2555123713188257297.post-44237094090081509582009-12-20T01:46:36.848-05:002009-12-20T01:46:36.848-05:00What you suggested is one way to deal with the inc...What you suggested is one way to deal with the incredibly simple dilemma lies at the heart of global warming. It is called an externality. An externality is what happens when someone takes action and someone else pays a price for it. There can be positive and negative externalities. <br /><br />Can this problem be solved by taxation or cap and trade or asking people to change their behavior -- probably not. Steven Levitt of Chicago suggests the use of science to deal with issues of climate change. <br /><br />He argues that we should take actions that generate a positive externality. For example, The explosion of Mt. Pinatubo resulted in sulpher dioxide being spewed into the air. The sulpher dioxide acted as a natural screen shielding the earth from the rays of the sun. It was a positive externality. It was shown scientifically that in the years following the explosion the earth cooled. <br /><br />Levitt suggests the use of geo-engineering solutions to reverse climate change. It is cheap and with quicker results.Anonymousnoreply@blogger.com