Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as: tax rebates to those causing negative externalities. a reduction in the amount of gasoline that each person is allowed to purchase. a carbon tax or a cap and trade system. a reduction in the price of green cars and appliances.

a carbon tax or a cap and trade system.

Explanation:

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as a carbon tax or a cap and trade system. A carbon tax is a tax imposed on the burning of carbon based fuels for energy generation, this approach will force large manufacturing plants to adopt more sustainable means of energy generation and hence cut down on carbon emission. The funds gotten through carbon taxing can be used in implementing adaptation measures to the scourge of climate change. On the other hand cap and trade system is a regulatory measure imposed on large manufacturing plants to regulate their gas emission, in this method, an emission limit is set for large plant operators and when they are able to cut down emissions below their limits, they sell emission allowances to other companies and thus generate revenues. This is an incentive that will spur companies to adopt measures that will result in reduced emission of carbon and other greenhouse gases.

1. government controls industry through policy

2.government is both a consumer and a producer

4. government can use policy t influence economy

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