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Economics case study on the article - The Precautionary Principle as a Basis for Decision Making by Cass R. Sunstein

Number of Words : 3459

Number of References : 16

Contents

 This paper answers the following questions on the article -
 1. In your own words, summarise the article. What is the main message of this article? [8 marks]
 2. Conduct your own research of the literature on the ‘precautionary principle’. Describe the ‘precautionary principle’ in your own words and briefly explain the main application of this principle in practice. Do you agree with the evaluation of the principle by the author of the article? Make sure you justify your answer. [8 marks]
 3. Provide an in-depth impact analysis of ‘precautionary principle’ in the following two sectors [concrete facts and figures are encouraged]: (i) Pharmaceutical Industry and (ii) Energy Industry. Can you propose an alternative mechanism to overcome some of the limitations of the ‘precautionary principle’ ? [ 8 marks]
 4. Explain the principle of perfect competition. What is the relationship between the principle of perfect competition and the precautionary principle? Are they complement to each other? [8 marks]
 5. ‘The precautionary principle is frequently paralyzing: It can stand as an obstacle to regulation and nonregulation, and to everything in be- tween.’ Evaluate this statement of the author in light of post-GFC international regulatory reforms. Do you think the post-GFC interna- tional regulatory reforms can prevent future financial crisis? Explain. [8 marks]

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