Analyzing a Policy Debate on Emissions
A politician from the country of Industria argues against a new, costly environmental regulation designed to drastically cut carbon emissions. They state: 'This policy will hurt our economy and cost our citizens jobs right now. Why should we pay such a high price for a problem that will mostly affect people 100 years from now, in a world we won't even see?'
From an economic perspective, explain the two distinct characteristics of the negative externality caused by carbon emissions that this statement highlights, making it an exceptionally difficult problem to address.
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