Answer Happy

please answered all part (1,2,3)
Part 1 Assume, to make the math easy, that climate change has two periods in which it causes damage: Next year it will cause $100 million in damage and in 200 years it will cause $100 million in damage. . year. Assume the discount rate is 2%, which is roughly what the 20-year treasury rate was for the last a. What is the Net Present Value (cost) of climate change? What fraction of the NPV is due to costs 200 years from now? b. 2. Assume the discount rate is the 0.001 rate used by Stern. a. What is the Net Present Value (cost) of climate change? b. What fraction of the NPV is due to costs 200 years from now? Part 2 Assume that a local municipality has faced a referendum on a crime prevention policy. A particular policy costs $100,000 and prevents crimes next year and only next year. 3. If the town will only approve this policy if it reduced $120,000 or more in crime costs next year, what is the implicit discount rate? Or differently what is the minimum rate of return the town requires to enact a public policy? 4. Is this value high or low compared to typical discount rates? 5. Explain why you think the rate is high or low compared to normal (this is not an unusual situation for a public works project).'
Part 3 Let's imagine that scientists hypothesize the existence of a tipping point but they are unsure of how weak or strong it is. The first group of scientists, group A, assigns Probability A to each of three possible levels of tipping point. They think there is 89.9% chance that a certain level of warming will not cross this tipping point resulting in a normal level of costs at $10 million. They think there is a 10% chance that there will be a weak tipping-point crossed resulting in $100 million in costs and a 0.1% chance of $100,000 million in costs. A second group of scientists, group B, thinks the chance of each outcome is slightly different as given in the second column. No tipping point Weak tipping point Strong tipping point Probability A 0.899 0.1 0.001 Probability B 0.8 0.1 0.1- Cost (millions)<= $10% $100 $100,000<< 6. If group A is correct, what is the optimal amount of money to spend to avoid climate change? If group B is correct, what is the optimal amount of money to spend to avoid climate change? 7. 8. What concept is demonstrated in the prior question? a. Weitzman's discussion of Uncertainty and Fat-Tails c. Nordhaus' critique of Stern b. Stern's low discount rates d. Rawls theory of Justice- Part 4 Multiple Choice 9. T/F Carbon is a large share of the atmosphere 10. T/F Methane is more common than CO2 11. T/F Methane is a stronger Greenhouse gas than CO2 12. T/F Methane in the atmosphere is due entirely to humans 13. T/F Methane in the atmosphere is being increased by humans