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Greenhouse gases and market valuation for energy

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This is a natural resource economics question so please consider the environment in your response. I need four or five sentences that addresses the following. I want to disagree with the position because the market externalities aren't addressed.

"The government should not be in the business of promoting renewable power, but should simply set a reasonable price on greenhouse gases and let the market determine the "correct" energy mix". Do you agree with this position? Why or why not?

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The expert examines Greenhouse gases and market valuation for energy.

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I disagree with the idea that the government should not be in the business of promoting renewable power. Merely setting a price on greenhouse gases and letting the market move to an energy equilibrium, while a step in the right direction, is a very near-sighted approach. This policy would move us a little toward renewable energy sources, but would not do enough. A small move toward renewable ...

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Robert Reinhart, MBA
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  • MBA, Merage School of Business, Univ of Cal, Irvine
  • BA, Univ of Cal, Irvine
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