According to Part 1 of Common Sense Economics, “There is no such thing as a free lunch” is one of the main principles of economics. In other words, people face tradeoffs.

For example, one tradeoff of of economic growth is pollution. Economic Growth is inevitably accompanied by ‘gross domestic by-products,’ including dirty air and polluted water, toxic waste, congestion, and noise.” The United States is the world’s largest economy and one of the world’s largest polluters.

What responsibility do we have to the rest of the world and to future generations in terms of staving off global warming? In other words, what type of economic sacrifice should the U.S. make to curb global warming? Should we allow developing countries to pollute more? Or should we hold these countries to the same standards?

For quick reference about the state of knowledge on global warming, check the EPA’s site on climate change. http://www.epa.gov/climatechange/science/

When considering this issue, I would like you to think about the opportunity costs. Watch the following videos with economist Bjorn Lomborg.

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