Question 1

Under U.S. law, the technology-based effluent limitations are

Accepted Answer

The answer of Under U.S. law, the technology-based effluent limitations...

Question 2

In the United States, tradeable effluent markets are far less common than they are in other countries.

Accepted Answer

In the United States, tradeable effluent markets, also known as water quality trading programs, have been developed and are more common compared to many other countries. These markets allow for the trading of pollution credits to meet environmental regulatory standards, particularly under the Clean Water Act.

Question 3

When polluting sources with different Marginal Abatement Costs (MACs) are faced with a Marginal Effluent Fee (MEF), each abates at a different level, which means that the effluent fee does not achieve a cost-effective solution.

Accepted Answer

The statement is incorrect. The effluent fee actually does achieve a cost-effective solution, as sources with higher MACs will choose to abate less and pay the fee, while sources with lower MACs will choose to abate more and pay less in fees. This leads to a market equilibrium where the overall cost of pollution reduction is minimized.

Question 4

The presidential Executive Order that is dedicated to the restoration of the Chesapeake Bay proposes a strictly command-and-control approach to restore and protect this natural resource.

Accepted Answer

The Executive Order for the restoration of the Chesapeake Bay proposes a collaborative approach involving federal, state, and local governments, as well as stakeholders from various sectors. It emphasizes the use of voluntary programs, incentives, and partnerships to achieve the restoration goals. While there may be some command-and-control measures, such as enforcing laws and regulations, the approach is not strictly based on that.

Question 5

Polluting sources have an incentive to abate up to the point where their Marginal Abatement Cost (MAC) equals the Marginal Effluent Fee (MEF), and to pay the fee beyond that point.

Accepted Answer

The statement is true according to the concept of the "polluter pays principle" in environmental economics. The idea is that by imposing a fee on the amount of pollution emitted, the cost of pollution becomes internalized into the decision-making of the polluter. As a result, polluters have an incentive to reduce their emissions up to the point where the cost of reducing the emissions equals the fee imposed. Beyond that point, it is cheaper for them to pay the fee rather than to reduce their emissions further. This creates an incentive for polluters to reduce their emissions and for society to benefit from a cleaner environment.

Question 6

The federal grant program for POTW construction

Accepted Answer

The answer of The federal grant program for POTW construction
...

Question 7

A watershed refers to a hydrologically defined land area that drains into a specific water body.

Accepted Answer

A watershed is defined by the area of land where all the water that falls within it, drains into a specific water body, such as a river or lake. It is based on the physical boundaries of the land, rather than political boundaries.

Question 8

An effluent fee

Accepted Answer

An effluent fee is a type of economic instrument where a fee is charged for the pollution being discharged into the environment. This fee can be based on the degree of harm linked to the contaminant being released. Therefore, choice C is the correct answer as it accurately describes an effluent fee. Choices A and B are incorrect as they do not accurately reflect the definition of an effluent fee. Choice D is also incorrect as the quantity of pollution released is one of the factors that can be taken into account when calculating the effluent fee.

Question 9

Tradeable effluent permit markets can lead to cost savings as long as polluting sources face different marginal abatement costs to control the same pollutant.

Accepted Answer

Tradeable effluent permit markets allow firms with low marginal abatement costs to sell excess permits to firms with higher marginal abatement costs, leading to overall cost savings in reducing pollution. However, if all polluting sources face the same marginal abatement costs to control the same pollutant, then there will be no cost savings from permit trading.

Question 10

The technology-based effluent limitations

Accepted Answer

Technology-based effluent limitations are performance-based standards that set specific limits on the discharge of pollutants from industrial facilities, regardless of the age of the facility. They are not limited to nonpoint sources and have not been eliminated from U.S. water quality policy.

Question 11

The use of watershed-based NPDES permits allows for permitting multiple point sources within a single watershed.

Accepted Answer

Watershed-based NPDES permits are designed to manage water quality in entire watersheds as a whole. This type of permitting approach allows for the permitting of multiple sources, including point sources such as industrial or municipal discharges, within a single watershed. The goal is to promote more comprehensive management of water quality by addressing the cumulative impacts of all sources within the watershed.

Question 12

The setting of effluent limitations

Accepted Answer

Effluent limitations are primarily based on the technological capability to reduce pollution, rather than benefit-cost analysis or achieving an efficient solution.

Question 13

Giving states control of nonpoint source pollution

Accepted Answer

States often lack the comprehensive data necessary to effectively assess and manage nonpoint source pollution, making localized control challenging.

Question 14

The Clean Water State Revolving Fund (CWSRF) Program

Accepted Answer

The Clean Water State Revolving Fund (CWSRF) Program sets up lending programs at the state level to support POTW (Publicly Owned Treatment Works) construction. It is still active and provides low-interest loans to states and communities to help finance water quality infrastructure projects. It was also supported by the American Recovery and Reinvestment Act of 2009.

Question 15

If the effluent limitations are insufficient for a body of water

Accepted Answer

If the effluent limitations are insufficient for a body of water, it becomes "water quality limited" and more stringent controls are required. Additionally, that water body becomes subject to total maximum daily loads (TMDLs). Therefore, option D is the best choice as it includes both of these consequences.

Question 16

If water quality law prevents the achievement of the efficiency criterion

Accepted Answer

If water quality law prevents the achievement of the efficiency criterion, it may not be feasible to repeal the law. Therefore, a "second-best" economic solution is to identify cost-effective policy initiatives that can be implemented within the constraints of the law. This will help to achieve the efficiency criterion while also complying with the relevant regulations. Cost-effectiveness is not prevented by this approach, and it is a practical solution that can help to balance economic and environmental goals. Option D is also a possible solution, but it is not the best choice because it assumes that polluting sources will voluntarily abate up to the point of social benefit maximization, which is not always the case.

Question 17

All of the following statements about the Nonpoint Source Management Program are correct EXCEPT

Accepted Answer

The statement "The federal government offers no funding for the program" is incorrect. The Nonpoint Source Management Program provides federal funding to support state implementation of the program.

Question 18

A fertilizer tax is an example of an effluent fee.

Accepted Answer

An effluent fee is a charge levied on the discharge of pollutants into the environment, while a fertilizer tax is a tax on the purchase of fertilizer.

Question 19

According to the textbook application, efforts to restore the Chesapeake Bay have been markedly successful.

Accepted Answer

Efforts to restore the Chesapeake Bay have faced challenges and mixed results, with some improvements but ongoing issues like pollution and habitat loss.

Question 20

A volume-based effluent fee is based on the degree of harm linked to the contaminant released.

Accepted Answer

A volume-based effluent fee is based on the amount (volume) of effluent discharged, not on the degree of harm or toxicity of the contaminant.

Quiz 15: Improving Water Quality: Controlling Point and Nonpoint Sources