VJC_H3_ECONS_P1

1 VICTORIA JUNIOR COLLEGE JC 2 PRELIMINARY EXAMINATION 2017 H3 Economics 9809/01 3 hours 15 minutes READ THESE INSTRUCTIONS FIRST Write your index number and name on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A Answer all questions. Section B Answer two questions. At the end of the examination, fasten all your work securely together. The number of marks is given in the brackets [ ] at the end of each question or part question. This document consists of 7 printed pages

2 Section A Answer all questions in this section The Economics of Climate Change – Challenges and Opportunities Extract 1: United States (US) withdrawal from the Paris Agreement "We're getting out." It was with these words that US President Donald Trump signified the United States' decision to break from the Paris Agreement on Climate Change. In 2016, the Paris Agreement marked a turning point in the battle against climate change. World leaders from across the globe united for the first time in history to legally ratify action against pollution through the United Nations Framework Convention. The ultimate purpose of the Paris Agreement was to lowe r emissions to combat global warming. The European Union (EU) has rejected Trump's idea o f re-working the deal around US industry demands. On Wednesday 14 June, European Commission president Jean-Claude Juncker told the EU Parliament in no uncertain terms that “the European Union will not renegotiate the Paris agreement (in the aftermath of the US decision to pull out).” In a statement released by a foreign ministry spokesperson, China has maintained its decision to support for the Paris Accord: "The general trend of green, low-carbon and sustainable development advocated by the Paris Agre ement coincides with China's policy of promoting ecological advancement. However the other countries may change, China will continue to pursue innovative, coordinat ed, green, open and shared development, bear in mind its domestic requirements for sustainable growth, step up concrete efforts to deal with climate change and fa ithfully implement the Paris Agreement." Beijing also sees the opportunity to de velop strategic renewable industries needed to combat climate change. Having famously stated that climate change is a "hoax", Trump promises to resurrect the United States' mining and fossil fuel industry. Source: wired.com.uk, 2017 Figure 1: World Health Organization: Annual levels of PM2.5 (harmful pollutant)

3 Extract 2: Transition to a low-carbon economy? The technological changes we need to transition to an energy infrastruc