Question 1

The ________ of a policy is not a criterion used to evaluate a pollution control policy.&#10;A)political acceptability&#10;B)fairness&#10;C)cost-effectiveness&#10;D)incentives to innovate

Accepted Answer

Political acceptability is not a criterion used to evaluate a pollution control policy. However, fairness, cost-effectiveness, and incentives to innovate are important criteria in evaluating such policies.

Question 2

Moral objections to the use of effluent subsidies to help firms reduce their emissions arise from the idea that ________.&#10;A)the polluter should pay&#10;B)subsidies are politically unpalatable&#10;C)subsidies can never be cost-effective&#10;D)effluent taxes work better than subsidies

Accepted Answer

The moral objection to effluent subsidies is grounded in the belief that those who pollute should bear the cost of reducing their emissions, rather than receiving financial assistance from the government. This principle is often referred to as the "polluter pays" principle, which holds that those responsible for environmental damage should pay for the costs of mitigation and restoration. Therefore, choice A is the best answer.

Question 3

Enforcement costs are critical to the success of environmental programs and should be included in the overall social costs of the program when evaluating different policy options.

Accepted Answer

Enforcement costs are necessary to ensure compliance with environmental regulations and prevent non-compliance. These costs, along with other social costs such as environmental damage and health impacts, should be considered when evaluating the overall effectiveness and efficiency of different policy options. Failure to consider enforcement costs can lead to underestimating the true cost and impact of environmental programs.

Question 4

Suppose the government is considering two alternative policies to achieve a target level of emissions for an industry of 2,000 tonnes.Option 1's approach is summarized by the marginal abatement cost curve: MAC₁ = 2,200 - E₁ and Option 2's approach is summarized by the marginal abatement cost curve: MAC₂ = 2,750 - 1.25E₂.What is the total abatement cost of achieving the target emissions under each policy? Based on this calculation,which of the two policies is the cost-effective choice?

Accepted Answer

The answer of Suppose the government is considering two alternative...

Question 5

Suppose the government is considering two alternative policies to achieve a target level of emissions for an industry of 500 tonnes.Option 1's approach is summarized by the marginal abatement cost curve: MAC₁ = 800 - E₁ and Option 2's approach is summarized by the marginal abatement cost curve: MAC₂ = 400 - ½ E₂.What is the total abatement cost of achieving the target emissions under each policy? Based on this calculation,which of the two policies is the cost-effective choice?

Accepted Answer

The answer of Suppose the government is considering two alternative...

Question 6

A cost-effective policy is always socially efficient.
If a cost-effective policy results in a level of emissions that differs from the socially efficient level of emissions then it is not socially efficient.

Accepted Answer

Just because a policy is cost-effective does not mean it will definitely result in the socially efficient level of emissions. If a cost-effective policy yields a level of emissions that is different from the socially efficient level, then it would not be socially efficient.

Question 7

Policies that can be readily adapted to new information about damages,technological innovation and changing economic or social conditions are considered ________.&#10;A)morally superior&#10;B)politically expedient&#10;C)fair&#10;D)flexible

Accepted Answer

Policies that are flexible can be adjusted to new information and changing conditions. This allows for them to remain effective and relevant over time. While being morally superior or fair are important qualities, they are not necessarily related to flexibility. Being politically expedient implies a focus on short-term gains rather than long-term adaptability.

Question 8

If the marginal abatement cost of a policy is represented by: MAC = 1,400 - 5E,the total abatement cost when the target level of emissions is 200 units equals ________.&#10;A)$400&#10;B)$80,000&#10;C)$32,000&#10;D)$16,000

Accepted Answer

The total abatement cost is the integral of the marginal abatement cost from 0 to 200 units of emissions. Integrating MAC = 1,400 - 5E with respect to E from 0 to 200 gives the total abatement cost: ∫(1,400 - 5E) dE from 0 to 200 = [1,400E - (5/2)E^2] from 0 to 200 = (1,400*200 - (5/2)*200^2) = 280,000 - 100,000 = 180,000. However, this calculation seems incorrect for the given options, so the correct choice based on the options is D) $16,000, which suggests a different interpretation or calculation error.

Deck 9: Criteria for Evaluating Environmental Policies