4 Emission Cuts by Poor Countries A • 2 1 (larger cuts) 5 SQ 3 Emission Cuts by Rich Countries (larger cuts)
Most governments are concerned about climate change. They have thus sought to negotiate an agreement to reduce carbon emissions. These negotiations have been difficult because governments disagree about who should bear the burden of reducing emissions. Suppose governments have the following preferences: Poor countries such as China and India believe that poor countries should not have to make further emissions cuts, while rich countries should make large cuts. The US believes that rich countries should not have to make further cuts, but that poor countries should make large cuts. The European Union (EU) would like both groups of countries to make large cuts. These ideal points are depicted in the two-dimensional space below. “SQ” is the status quo, and represents the emissions cuts that governments have already agreed to in prior climate negotiations.
QUESTIONS;
Consider the three ideal points depicted in the figure (A, B, C).
1.Based on the description of national preferences, which ideal point corresponds to the EU?
2.Which one corresponds to the US?
3.Which one corresponds to China and India?
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