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Pollution is a part of economic life, and, in recent years, it has become a very important part of many businesses. A factor of demand for products and services is related to the government and to the laws the U.S. Congress enacts. In the past, the U.S. Congress often employed policies that ordered firms to use particular methods to reduce pollution. Many economists are critical of this approach and argue that a more efficient way to deal with pollution is through a market-based approach. In 2009, President Obama proposed a market-based approach known as cap-and-trade. Under this system, the federal government would auction off allowances to produce a given amount of carbon dioxide emissions. Firms would buy and sell allowances, but must end up with allowances equal to the amount of carbon dioxide they emit. This system is similar to the successful one employed by steel producers years ago.
Use the following information to ensure successful completion of the assignment:
Review the Lindzen (2010) article in the module readings.
Review the Hayward (2010) article in the module readings.
Write a paper of 1,750-2,000 words that addresses the influence of environmental politics on economic policy. Include the following in your paper:
A reconciliation of the articles by Lindzen and Hayward with the accepted notion of global warming. Is global warming an issue?
A statement regarding to what extent government should or should not intervene based on your reconciliation.
A statement of the potential economic effects of your proposed level of government intervention or nonintervention. Why is or is not the above plan proposed by President Obama a viable alternative?

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