1. The Economics of Climate Change Santiago Saavedra-Pineda Stanford-SPLASH April 14 th, 2013

2. http://www.youtube.com/watch?v=kY -ZnpWbJdw&feature=youtu.be

3. Outline 1.What is an externality? 2.The hamburguer’s market 3.How will the price of goods raise with a carbon tax?

4. Price Quantity Q0Q0 Supply Demand Tax Q1Q1 t+P 1 P1P1 P0P0

5. Sample Carbon footprint Hamburgers ___20___ CO2e emissions per hamburger 6.5 lbs/hmb Total _20x6.5=130lb__ Electricity Consumed __940____ kWh CO2e emissions per kWh CA 0.9 lbs/kWh Total ___940x0.9=846lb__ Miles driven by Bycicle __60___ CO2e emissions per mile 0 Total __0lb____ Gallons of gasoline __24__ CO2e emissions per gallon 19.67 lbs/gal Total ___24x19.67=472.08lb___ Total emissions __130+846+0+472.08=1448.08lb________ Price $4.53 per 1000 pounds of CO2 Total monthly carbon tax __4.53*1.49=$6.56_______