Question 1

Using an example,discuss why economists are leery of using a fuel content rule that mandates using a certain percentage of renewable fuel content to try and achieve greenhouse gas emission reductions.

Accepted Answer

Although this policy sounds like it will help reduce GHG emissions,it is possible it will cause emissions to rise.One has to look at the life cycle of production of the renewable fuels to estimate net impact on GHGs.For example,comparing ethanol to biofuels produced from waste grease it has been shown that ethanol production increases GHG emissions while biofuels successfully reduce them.The reason ethanol is unsuccessful is the fact that it is derived from corn which requires a lot of fertilizer to grow.Fertilizer requires a lot of energy from fossil fuels in its production and if this energy comes from the burning of coal,it will generate a lot of GHG emissions.

Question 2

Biological diversity is a high priority for people who are struggling to get enough resources to achieve some degree of economic security.

Accepted Answer

While biological diversity is important for the health and sustainability of ecosystems, for many people struggling with poverty and economic insecurity, it is not a high priority compared to basic needs such as food, water, shelter, and healthcare. Their focus is more likely to be on immediate survival rather than long-term environmental concerns.

Question 3

List the six desirable design features for creating an economically efficient carbon pricing scheme.

Accepted Answer

From the perspective of economic efficiency,desirable design features for carbon pricing schemes include:1)comprehensive coverage of emissions;2)a uniform price applied to all emissions;3)stable and predictable emission prices;4)emission prices that are aligned with environmental damages or climate stabilization goals;5)maximizing the impact of the fiscal dividend;and 6)using carefully targeted compensation schemes for vulnerable households and firms.

Question 4

When allowances are distributed to firms for free according to some allocation rule determined by the regulator this is known as ________.

Accepted Answer

The distribution of allowances for free according to an allocation rule determined by the regulator is known as grandfathering. Grandfathering essentially means that firms receive allowances based on their historical emissions. This is in contrast to auctioning, where allowances are sold to the highest bidder, and trading, where firms can buy and sell allowances on the open market. Offset refers to the practice of reducing emissions in one sector or country to offset emissions in another sector or country.

Question 5

If permits are distributed through an auction,governments can recycle the revenue in the form of tax cuts to offset some losses experienced by firms.

Accepted Answer

This statement is true. When permits are distributed through an auction, the government generates revenue from the sale of permits. This revenue can be recycled in the form of tax cuts, which can help to offset some of the losses experienced by firms as a result of complying with the permit system.

Question 6

The revenue from
B.C.'s carbon tax flows back to households and industry in the form of cuts to personal and corporate income tax rates,tax credits for low income and rural households,and some property tax relief for industry.

Accepted Answer

The statement accurately describes how the revenue from B.C.'s carbon tax is distributed back to households and industry.

Question 7

International embarrassment is enough of a deterrent to prevent the development of a black market in CFCs.

Accepted Answer

International embarrassment is not a strong enough deterrent to prevent the development of a black market in CFCs. Other measures such as strict regulations and penalties are necessary to minimize the trade of harmful substances like CFCs.

Question 8

Environment Canada's quota system to phase out ozone depleting chemicals did not restrict the supply of specific CFCs or halons;rather it was set in term of ________ allowing for flexibility in meeting the target.

Accepted Answer

The quota system mentioned in the statement was based on the ozone-depleting potential of the substances, which is a measure of their ability to deplete the ozone layer. This allowed for flexibility in meeting the target as the industry could choose to reduce the supply of substances with higher ozone-depleting potential over those with lower potential, as long as the overall quota was met.

Question 9

It is important to preserve biodiversity because genetic diversity from wild species can add value to agricultural breeding programs.

Accepted Answer

Genetic diversity from wild species can provide valuable traits such as disease resistance, drought tolerance, and increased yields to agricultural breeding programs, which can help to improve crop productivity and resilience. Therefore, preserving biodiversity is crucial to maintain genetic resources that can benefit food production and contribute to global food security.

Question 10

Habitat maintenance is not essential for preserving biodiversity because breeding programs at zoos and agricultural research stations are adequate for this purpose.

Accepted Answer

Habitat maintenance is essential for preserving biodiversity because it provides the necessary environment for species to thrive and reproduce naturally. Breeding programs and research stations can supplement conservation efforts, but they cannot replace the need for intact and functioning natural habitats.

Question 11

List four design principles that economists recommend for setting up a cap-and-trade system.

Accepted Answer

The answer of List four design principles that economists recommend...

Question 12

A transferable emission permit scheme will always be superior to an emission tax when it comes to developing an economically efficient carbon pricing scheme.

Accepted Answer

A transferable emission permit scheme (cap-and-trade) and an emission tax (carbon tax) each have their own advantages and disadvantages, and the superiority of one over the other depends on various factors such as the specific environmental target, economic conditions, and the ability to accurately measure emissions. The efficiency of either approach in achieving carbon pricing objectives can vary based on these factors.

Question 13

Canada's implicit carbon tax rates that are below those of the United States but higher than those in Europe.

Accepted Answer

Canada's implicit carbon tax rates are generally higher than those in the United States but lower than those in many European countries, reflecting Canada's more aggressive stance on carbon pricing compared to the US and its position relative to the often more stringent policies found in Europe.

Question 14

The Canadian province with the highest greenhouse gas emissions is ________.

Accepted Answer

Alberta is known for its oil and gas industry, which is a major contributor to greenhouse gas emissions. In 2018, Alberta accounted for 38% of Canada's total greenhouse gas emissions. Ontario has the highest population and industrial activity, but has taken steps to reduce emissions through initiatives such as the closure of coal-fired power plants. British Columbia and Quebec have implemented carbon pricing policies and invested in clean energy technologies, leading to lower emissions in comparison to Alberta.

Question 15

List and briefly explain the five criteria that should be satisfied to establish an effective offset system that leads to real emission reductions.

Accepted Answer

The answer of List and briefly explain the five criteria...

Question 16

Developing a carbon pricing scheme with stable and predictable emission prices is an important design goal for policymakers to keep in mind.

Accepted Answer

Developing a carbon pricing scheme with stable and predictable emission prices is an important design goal for policymakers to ensure that businesses can plan long-term investments and adjust their behavior to reduce their carbon footprint. This stability can also provide incentives for innovation in low-carbon technologies and help meet emissions reduction targets.

Question 17

Large multinational firms saw the potential for profits by developing substitutes for CFCs which helped with phasing out its use.

Accepted Answer

This statement is true. Large multinational firms, such as DuPont, saw the potential for profits by developing substitutes for CFCs, such as HFCs, which helped with phasing out their use in products such as refrigerators and air conditioning units.

Question 18

Employing a global CO₂ price to contain mean projected warming to a specific target at least cost is an example of ________.

Accepted Answer

Employing a global price on carbon emissions to achieve a specific target for reducing global warming is an example of a climate stabilization goal. The goal is to stabilize the Earth's temperature rise to a specific level. A fiscal dividend is a financial incentive provided to consumers or companies to encourage them to engage in environmentally friendly behavior. Cap and trade and emission trading systems are market-based mechanisms to reduce greenhouse gas emissions.

Question 19

Carbon offsets result in either the same level of emission reduction at lower cost than in a system without them,or greater emissions reduction at the same cost because the offset works like a withdrawal of allowances from the market.

Accepted Answer

Carbon offsets allow for the reduction of emissions at a lower cost than in a system without them, or for greater emissions reduction at the same cost by effectively "withdrawing" allowances from the market.

Question 20

________ is a particular problem in ________ which contain a disproportionately large share of the world's wild species,but which are also under great pressure to pursue modern economic development.

Accepted Answer

Habitat destruction, which is the result of human activities such as deforestation, urbanization, and industrialization, is a significant problem in developing countries that contain a large proportion of the world's wild species. These countries are also under intense pressure to pursue economic development, which often leads to deforestation, land-use change, and other activities that cause habitat loss and biodiversity decline. Developed countries have already undergone significant habitat destruction and have therefore experienced a shift towards biological uniformity.

Quiz 20: The Global Environment

Using an example,discuss why economists are leery of using a fuel content rule that mandates using a certain percentage of renewable fuel content to try and achieve greenhouse gas emission reductions.

Biological diversity is a high priority for people who are struggling to get enough resources to achieve some degree of economic security.

List the six desirable design features for creating an economically efficient carbon pricing scheme.

When allowances are distributed to firms for free according to some allocation rule determined by the regulator this is known as ________.

If permits are distributed through an auction,governments can recycle the revenue in the form of tax cuts to offset some losses experienced by firms.

The revenue from B.C.'s carbon tax flows back to households and industry in the form of cuts to personal and corporate income tax rates,tax credits for low income and rural households,and some property tax relief for industry.

International embarrassment is enough of a deterrent to prevent the development of a black market in CFCs.

Environment Canada's quota system to phase out ozone depleting chemicals did not restrict the supply of specific CFCs or halons;rather it was set in term of ________ allowing for flexibility in meeting the target.

It is important to preserve biodiversity because genetic diversity from wild species can add value to agricultural breeding programs.

Habitat maintenance is not essential for preserving biodiversity because breeding programs at zoos and agricultural research stations are adequate for this purpose.

List four design principles that economists recommend for setting up a cap-and-trade system.

A transferable emission permit scheme will always be superior to an emission tax when it comes to developing an economically efficient carbon pricing scheme.

Canada's implicit carbon tax rates that are below those of the United States but higher than those in Europe.

The Canadian province with the highest greenhouse gas emissions is ________.

List and briefly explain the five criteria that should be satisfied to establish an effective offset system that leads to real emission reductions.

Developing a carbon pricing scheme with stable and predictable emission prices is an important design goal for policymakers to keep in mind.

Large multinational firms saw the potential for profits by developing substitutes for CFCs which helped with phasing out its use.

Employing a global CO₂ price to contain mean projected warming to a specific target at least cost is an example of ________.

Carbon offsets result in either the same level of emission reduction at lower cost than in a system without them,or greater emissions reduction at the same cost because the offset works like a withdrawal of allowances from the market.

is a particular problem in which contain a disproportionately large share of the world's wild species,but which are also under great pressure to pursue modern economic development.

Quiz 20: The Global Environment

Using an example,discuss why economists are leery of using a fuel content rule that mandates using a certain percentage of renewable fuel content to try and achieve greenhouse gas emission reductions.

Biological diversity is a high priority for people who are struggling to get enough resources to achieve some degree of economic security.

List the six desirable design features for creating an economically efficient carbon pricing scheme.

When allowances are distributed to firms for free according to some allocation rule determined by the regulator this is known as ________.

If permits are distributed through an auction,governments can recycle the revenue in the form of tax cuts to offset some losses experienced by firms.

The revenue from B.C.'s carbon tax flows back to households and industry in the form of cuts to personal and corporate income tax rates,tax credits for low income and rural households,and some property tax relief for industry.

International embarrassment is enough of a deterrent to prevent the development of a black market in CFCs.

Environment Canada's quota system to phase out ozone depleting chemicals did not restrict the supply of specific CFCs or halons;rather it was set in term of ________ allowing for flexibility in meeting the target.

It is important to preserve biodiversity because genetic diversity from wild species can add value to agricultural breeding programs.

Habitat maintenance is not essential for preserving biodiversity because breeding programs at zoos and agricultural research stations are adequate for this purpose.

List four design principles that economists recommend for setting up a cap-and-trade system.

A transferable emission permit scheme will always be superior to an emission tax when it comes to developing an economically efficient carbon pricing scheme.

Canada's implicit carbon tax rates that are below those of the United States but higher than those in Europe.

The Canadian province with the highest greenhouse gas emissions is ________.

List and briefly explain the five criteria that should be satisfied to establish an effective offset system that leads to real emission reductions.

Developing a carbon pricing scheme with stable and predictable emission prices is an important design goal for policymakers to keep in mind.

Large multinational firms saw the potential for profits by developing substitutes for CFCs which helped with phasing out its use.

Employing a global CO2 price to contain mean projected warming to a specific target at least cost is an example of ________.

Carbon offsets result in either the same level of emission reduction at lower cost than in a system without them,or greater emissions reduction at the same cost because the offset works like a withdrawal of allowances from the market.

________ is a particular problem in ________ which contain a disproportionately large share of the world's wild species,but which are also under great pressure to pursue modern economic development.

Employing a global CO₂ price to contain mean projected warming to a specific target at least cost is an example of ________.

is a particular problem in which contain a disproportionately large share of the world's wild species,but which are also under great pressure to pursue modern economic development.