1. Read Eye on Climate Change on p. 252 and then describe the government actions that could decrease carbon emissions and explain why the government is not using them more aggressively
2. The price of gasoline in Europe is about three times that in the United States, mainly because the European gas tax is higher than the U.S. gas tax. How would an increase in the gas tax in the United States to the European level change carbon emissions? Would this tax increase bring greater efficiency or would it increase deadweight loss?