Climate Change and the Economy

A circular flow of how climate change can effect.

When it comes to climate change and how it can have affect on our economy the best options to regulate during a drought is either canceling fireworks, or not allowing bonfires during the drought; however, I think bonfires is the better option, because it will be easier to inforce and have less externalties. When it comes to bonfires government can help by having cops give tickets when we are in a drought and are banning bonfires, also people will more likely to not have them because its not as serious as fourth of July fireworks. This holiday's tradition is having fireworks to celebrate the freedom of our country. Fireworks would also have many externalities and none of which are positive. If we were to regulate fireworks consumers will not be buying fireworks which would be less tax the government can collect of them, and it would also lead to unemployment because the firms are not making enough money to pay the workers. Where bonfires will not have such a big impact on the economy in a negative way.