Deck 19: International Environmental Agreements

Question 1

International agreements come in several forms and environmental agreements have made use of each form. One such form is a convention, which is

A) an agreement where countries define a problem and agree to address it, without specifying what actions will take place.
B) an agreement where countries define a problem and agree to address it, and detail some of the specific actions that will be undertaken.
C) an agreement where countries define a problem and agree to address it, and detail all of the specific actions that will be undertaken including the signatories and institutions that are responsible for that action.
D) an agreement entered into by only two countries.

Answer 1

A

Question 2

The Montreal Protocol on Substances that Deplete the Ozone Layer is

A) a unilateral agreement requiring phase-out and consumption freezes of ozone depleting substances.
B) a bilateral agreement requiring phase-out and consumption freezes of ozone depleting substances.
C) a multilateral agreement requiring phase-out and consumption freezes of ozone depleting substances.
D) none of the above.

Answer 2

C

Question 3

As a partial result of the Montreal Protocol, scientists predict that the hole in the ozone will be substantially_____ by _________.

A) increased; 2070
B) diminished; 2070
C) increased; 2030
D) diminished; 2030

Answer 3

B

Question 4

The Environmental Protection Agency (EPA) has estimated that for every 1 percent increase in UV_B radiation, basal-cell and squamous-cell cancer cases increase by 1 and 2 percent respectively. This is called

A) sensitivity analysis.
B) a dose-response relationship.
C) ecosystem response.
D) vigorous response.

Question 5

The Montreal Protocol is considered successful because

A) it found wide agreement among the nations of the world.
B) it created conditions that satisfied both developed and developing nations.
C) it provided a model for future international agreements.
D) all of the above.

Question 6

When countries engage in multilateral agreements regarding pollutants that affect all of them (i.e. acid rain pollution resulting from SO₂ emissions), the agreements supply

A) global private goods with no opportunity for free riders.
B) global public goods and the possibility of free riders.
C) like benefits to all countries.
D) side payments.

Question 7

Initially, in order to reduce the damages associated with CFCs, manufacturers began using

A) hydrofluorocarbons, which do not cause environmental damage.
B) hydrofluorocarbons, which cause less environmental damage.
C) hydrofluorocarbons, which cause more environmental damage.
D) equipment that limited the environmental impacts of CFCs.

Question 8

When two countries engage in an international agreement, they often invoke some element of ___________, which encourages compensation to a polluter who suffers a net financial loss when it limits its emissions to a socially efficient level that considers other damaged parties.

A) technology transfer
B) the victim pays principle (VPP)
C) the polluter pays principle (PPP)
D) the Conference on the Human Environment ("earth summit")

Question 9

Refer to the figure above. Without government intervention, the market depicted would produce ______ units of CFCs at a price of ______.

A) q₁; p₁
B) q₁; p₂
C) q₂;p₁
D) q₂;p₂

Question 10

Refer to the figure above. With government imposing restrictions on total production of q₂ , the market depicted would produce ______ units of CFCs at a price of ______.

A) q₁; p₁
B) q₁; p₂
C) q₂;p₁
D) q₂;p₂

Question 11

The Trail Smelter case of 1935 was an important case involving a British Columbian metal refinery that damaged farmlands in the United States. This case set an important international precedent referred to as

A) side payments.
B) the victim pays principle (VPP).
C) the polluter pays principle (PPP).
D) the Conference on the Human Environment ("earth summit").

Question 12

Often countries are negotiating many international issues at the same time that they are considering agreements regarding environmental issues. If they are trying to establish a reputation as ________, their position on an environmental issue may seem inconsistent with self interest.

A) free riders
B) hard bargainers
C) command and control advocates
D) protectors of the public good

Question 13

Provisions of the Montreal Protocol include

A) requirements for individual countries to phase out the production and consumption of designated substances.
B) a multilateral fund where contributions from industrialized countries are used to support the activities from developing countries toward achieving controls assigned in the agreement.
C) a provision for trade restrictions, banning trade in the designated substances between signatories and nonsignatories.
D) all of the above.

Question 14

International agreements come in several forms and environmental agreements have made use of each form. One such form is a protocol, which is

A) an agreement where countries define a problem and agree to address it, without specifying what actions will take place.
B) an agreement where countries define a problem and agree to address it, and detail some of the specific actions that will be undertaken.
C) an agreement where countries define a problem and agree to address it, and detail all of the specific actions that will be undertaken including the signatories and institutions that are responsible for that action.
D) an agreement entered into by only two countries.

Question 15

In order for multinational agreements to be socially efficient, they need to

A) apply the same emission reduction goals to each country.
B) apply emission reduction goals according to the equiproportional principle.
C) apply emission reduction goals according to the equimarginal principle.
D) apply emission reduction goals according to per capital emissions.

Question 16

The Montreal Protocol has been _______ and ozone-depleting substances have _______.

A) unsuccessful; remained stable
B) unsuccessful; increased
C) successful; remained stable
D) successful; declined

Question 17

The available enforcement mechanisms are ________ at the international level compared to national level.

A) much stronger
B) much weaker
C) essentially the same
D) absent

Question 18

With government imposing restrictions on total production of CFC, the industries that produce products affected by the restriction will experience

A) higher marginal costs.
B) reduced prices for their products.
C) steeper demand curves.
D) excess profits.

Question 19

International agreements regarding the use of natural resources _________________.

A) are relatively new and have only been in existence for the last half century
B) began when countries sought to agree on navigation rules to cover ocean passages
C) have been virtually non-existent
D) both A and C

Question 20

Similar to the programs for eliminating the use of leaded gasoline, the Montreal Protocol employs ____________ as a mechanism for countries that are unable to meet required production cutbacks.

A) emission standards
B) technology standards
C) trade allowances of emission reduction credits
D) command and control policy

Question 21

In an international agreement, when one country sacrifices (A) to benefit another country (B), this usually is an indication that

A) MAC_A > MD_A
B) MAC_B > MD_B
C) MAC_A = MAC_B
D) MD_A = MD_B

Question 22

The "Paris Agreement" refers to

A) an agreement on carbon emissions goals for people living and visiting Paris
B) an agreement of over 100 countries to subsidize electric vehicle use to reduce global warming
C) an agreement for countries in Europe to set a goal to reduce global warming
D) an agreement on reducing global warming that allows countries to join or leave the agreement.

Question 23

Transactions costs associated with international agreements

A) are negative with consensus decision rules
B) are negative with majority decision rules
C) are positive with majority and consensus decision rules
D) do not apply to majority and consensus decision rules

Question 24

A key feature of the Paris Agreement is that

A) countries follow uniform goals
B) countries set their own goals
C) countries negotiate goals bilaterally
D) countries follow a top-down rather than a bottom-up protocol

Question 25

If a bi-lateral international agreement partially moves to a victim pays principled (VPP) for a given level of emissions, the marginal abatement costs for the victim

A) increase
B) decrease
C) do not change
D) cannot be determined