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Evaluating an Unprecedented Policy Intervention
A government is evaluating a proposal to fund a novel, large-scale atmospheric carbon capture technology. Proponents claim it could completely reverse the effects of climate change within a decade. However, some scientists warn that, because the technology is entirely unprecedented, it could also trigger unforeseen and potentially catastrophic global ecological consequences. There is no historical data or reliable model to estimate the likelihood of either the promised benefits or the potential disasters. Based on this scenario, explain why a policymaker would find it exceptionally difficult to use a standard cost-benefit analysis, which involves comparing the expected marginal social costs and marginal social benefits, to decide whether to fund this project.
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Economics
Economy
Introduction to Macroeconomics Course
Ch.8 Economic dynamics: Financial and environmental crises - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Analysis in Bloom's Taxonomy
Cognitive Psychology
Psychology
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Match each decision-making scenario with the type of information problem it best represents.
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Evaluating Investment in Breakthrough Technology
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