Question 1

Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as ________.

Accepted Answer

Ambient standards are regulatory standards that set limits on specific pollutants in the ambient environment, such as air, water or soil. These standards are designed to protect human health and the environment from harmful levels of pollutants in the surrounding environment. Emission standards, performance standards, and technology-based standards are different types of regulatory standards that may be used in environmental regulation, but they do not specifically relate to ambient environmental quality limits.

Question 2

If the marginal abatement cost equation for an industry is given by: MAC = 600 - 0.5E and the marginal damage cost equation for the same industry is MDC = 2.5E,what is the socially efficient equilibrium standard? What is the total abatement cost to achieve this standard?

Accepted Answer

The socially efficient equilibrium standard is set equal to E^* which corresponds to the level of emissions that equates MAC to MDC: 600 - 0.5E^* = 2.5E^* E^* = 600/3 = 200 The socially efficient equilibrium emission standard is equal to 200 units of emissions.The total abatement cost to achieve this standard is equal to the area under the MAC equation from emissions of 200 to the level of unregulated emissions,E₀,which can be found by setting MAC = 0: 0 = 600 - 0.5E₀E₀ = 600/0.5 = 1,200 So TAC = ½(1,200 - 200)500 = $250,000.

Question 3

Standards will be cost effective when they equate the level of emissions at each source.
This would only be true in the unlikely event that each source had identical marginal abatement cost functions.

Accepted Answer

Marginal abatement cost functions vary by source, so it is unlikely that equating emissions at each source would result in cost effectiveness unless the functions for each source were identical, which is unlikely.

Question 4

The ________ measures the residuals produced per unit of output (e.g. ,SO₂ emissions per kilowatt hour of electricity produced).

Accepted Answer

Emissions intensity measures the amount of emissions (e.g. SO₂) produced per unit of output (e.g. per kilowatt hour of electricity produced). Emission standard refers to a set limit for allowable emissions, emission concentration refers to the proportion of a particular substance in a total volume of emissions, and emission rate refers to the total amount of emissions produced over a period of time.

Question 5

When marginal damages for a pollutant vary by region,time of day,or season,a(n)________ will not be socially efficient but ________ that set the MAC curve equal to each MDC curve are socially efficient.

Accepted Answer

Uniform standards apply the same regulations across all regions, times, and seasons, which can be inefficient when marginal damages vary significantly. Individual standards, tailored to match the marginal abatement cost (MAC) curve with each marginal damage cost (MDC) curve, can address these variations more effectively, leading to socially efficient outcomes.

Question 6

In order to set individual standards in accordance with the equimarginal principle,regulators would have to know the marginal abatement cost relationship for each polluting source.
The informational requirements to set cost-effective standards are very high.

Accepted Answer

The equimarginal principle requires knowledge of the marginal abatement cost relationship for each polluting source, which means there are high informational requirements to set individual standards based on this principle.

Question 7

When marginal damages for a pollutant vary by region,time of day,or season,a uniform standard will not be socially efficient but individual standards that equate the MAC to each MDC are socially efficient.

Accepted Answer

If marginal damages for a pollutant vary by region, time of day, or season, a uniform standard will not be socially efficient as it does not take into account these differences. Individual standards that equate the Marginal Abatement Cost (MAC) to each Marginal Damage Cost (MDC) are socially efficient as they reflect the varying economic and environmental conditions in different regions, times of day, or seasons.

Question 8

Is there a uniform standard for carbon monoxide emissions that can be socially efficient in both urban and rural areas? Very briefly explain why or why not.

Accepted Answer

The answer of Is there a uniform standard for carbon...

Question 9

Technology-based standards provide firms with no incentive to find cheaper ways to reduce their emissions.

Accepted Answer

Technology-based standards specify the technology or methods that must be used, leaving little room for firms to innovate or find cost-effective alternatives.

Question 10

When regulators allow firms to self-monitor their compliance with emission standards,occasional audits from the regulator aim to avoid the problem of incomplete compliance.

Accepted Answer

Occasional audits from the regulator aim to ensure that firms are complying with emission standards and to avoid the problem of incomplete compliance when self-monitoring is allowed.

Question 11

Regulators need to strike a balance when setting the size of penalties for non-compliance so that courts will not be reluctant to impose sanctions on firms who fail to meet the standard.

Accepted Answer

Regulators must consider both deterrent effect and fairness when setting penalty sizes so that court enforcement can be upheld effectively without causing undue harm to firms.

Question 12

Under ________ the burden is on the ________ to make the right decision about what technology to use.

Accepted Answer

Technology-based standards put the burden on the public regulatory authority to determine the appropriate technology to be used to comply with the standard.

Question 13

List five perceived advantages of using standards to address environmental problems.

Accepted Answer

The answer of List five perceived advantages of using standards...

Question 14

Including the costs of enforcement decreases the socially efficient level of emissions.
Combining the marginal costs of enforcement with the MAC results in the socially efficient level of emissions increasing.

Accepted Answer

Including the costs of enforcement increases the total cost of reducing emissions, and thus the socially efficient level of emissions decreases. Combining the marginal costs of enforcement with the MAC will also result in a higher total cost, causing the socially efficient level of emissions to decrease further.

Question 15

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

Accepted Answer

The socially efficient equilibrium is achieved when the marginal social cost of emissions is equal to the marginal social benefit of emissions. This means that the level of emissions that maximizes social welfare is the socially efficient level of emissions. Therefore, the socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the socially efficient level of emissions.

Question 16

________ set standards that are unrealistic with today's technology in the hope that they will motivate the pollution-control industry to invent ways of meeting the standard at reasonable cost.

Accepted Answer

Technology-forcing standards set goals that may not be currently achievable with existing technology, but are intended to motivate industry to innovate and develop new technologies to meet those standards. This can lead to significant advancements in pollution control and protection of the environment.

Question 17

If the firm faced a standard of 40 units of emissions,what is the maximum amount of money it would be willing to spend on R&D to achieve the lower MAC?

Accepted Answer

The firm would be willing to spend up to $200 on R&D to achieve the lower MAC, as this is the difference between the cost of the standard and the cost of the lower MAC.

Question 18

The ambient quality of the water at various points downstream of a source of pollution depends on the quantity of emissions only.
The ambient quality of the water depends on the quantity of emissions as well as the hydrology of the river (e.g. ,rate of flow,temperature,etc. ).

Accepted Answer

The statement is false. The ambient quality of water not only depends on the quantity of emissions but also on various factors such as the hydrology of the river, the location of the pollution source, the nature of pollutants, the presence of natural and anthropogenic factors that may affect the water quality.

Question 19

Emission standards specify the technologies,techniques,or practices that potential polluters must adopt.

Accepted Answer

Emission standards specify the maximum amount of pollutants that a source is allowed to emit, rather than dictating the specific technologies, techniques, or practices to be used.

Question 20

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

Accepted Answer

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the level of emissions that equates marginal abatement cost (MAC) and marginal damage cost (MDC) because this level ensures that the marginal reduction in emissions results in a reduction in damages that is equal to the cost of marginal abatement. This maximizes social welfare by minimizing the total cost of abatement and damages.

Quiz 11: Command-And-Control Strategies: the Case of Standards

Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as ________.

If the marginal abatement cost equation for an industry is given by: MAC = 600 - 0.5E and the marginal damage cost equation for the same industry is MDC = 2.5E,what is the socially efficient equilibrium standard? What is the total abatement cost to achieve this standard?

Standards will be cost effective when they equate the level of emissions at each source. This would only be true in the unlikely event that each source had identical marginal abatement cost functions.

The ________ measures the residuals produced per unit of output (e.g. ,SO₂ emissions per kilowatt hour of electricity produced) .

When marginal damages for a pollutant vary by region,time of day,or season,a(n) will not be socially efficient but that set the MAC curve equal to each MDC curve are socially efficient.

In order to set individual standards in accordance with the equimarginal principle,regulators would have to know the marginal abatement cost relationship for each polluting source. The informational requirements to set cost-effective standards are very high.

When marginal damages for a pollutant vary by region,time of day,or season,a uniform standard will not be socially efficient but individual standards that equate the MAC to each MDC are socially efficient.

Is there a uniform standard for carbon monoxide emissions that can be socially efficient in both urban and rural areas? Very briefly explain why or why not.

Technology-based standards provide firms with no incentive to find cheaper ways to reduce their emissions.

When regulators allow firms to self-monitor their compliance with emission standards,occasional audits from the regulator aim to avoid the problem of incomplete compliance.

Regulators need to strike a balance when setting the size of penalties for non-compliance so that courts will not be reluctant to impose sanctions on firms who fail to meet the standard.

Under the burden is on the to make the right decision about what technology to use.

List five perceived advantages of using standards to address environmental problems.

Including the costs of enforcement decreases the socially efficient level of emissions. Combining the marginal costs of enforcement with the MAC results in the socially efficient level of emissions increasing.

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

________ set standards that are unrealistic with today's technology in the hope that they will motivate the pollution-control industry to invent ways of meeting the standard at reasonable cost.

If the firm faced a standard of 40 units of emissions,what is the maximum amount of money it would be willing to spend on R&D to achieve the lower MAC?

The ambient quality of the water at various points downstream of a source of pollution depends on the quantity of emissions only. The ambient quality of the water depends on the quantity of emissions as well as the hydrology of the river (e.g. ,rate of flow,temperature,etc. ).

Emission standards specify the technologies,techniques,or practices that potential polluters must adopt.

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

Quiz 11: Command-And-Control Strategies: the Case of Standards

Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as ________.

If the marginal abatement cost equation for an industry is given by: MAC = 600 - 0.5E and the marginal damage cost equation for the same industry is MDC = 2.5E,what is the socially efficient equilibrium standard? What is the total abatement cost to achieve this standard?

Standards will be cost effective when they equate the level of emissions at each source. This would only be true in the unlikely event that each source had identical marginal abatement cost functions.

The ________ measures the residuals produced per unit of output (e.g. ,SO2 emissions per kilowatt hour of electricity produced) .

When marginal damages for a pollutant vary by region,time of day,or season,a(n) ________ will not be socially efficient but ________ that set the MAC curve equal to each MDC curve are socially efficient.

In order to set individual standards in accordance with the equimarginal principle,regulators would have to know the marginal abatement cost relationship for each polluting source. The informational requirements to set cost-effective standards are very high.

When marginal damages for a pollutant vary by region,time of day,or season,a uniform standard will not be socially efficient but individual standards that equate the MAC to each MDC are socially efficient.

Is there a uniform standard for carbon monoxide emissions that can be socially efficient in both urban and rural areas? Very briefly explain why or why not.

Technology-based standards provide firms with no incentive to find cheaper ways to reduce their emissions.

When regulators allow firms to self-monitor their compliance with emission standards,occasional audits from the regulator aim to avoid the problem of incomplete compliance.

Regulators need to strike a balance when setting the size of penalties for non-compliance so that courts will not be reluctant to impose sanctions on firms who fail to meet the standard.

Under ________ the burden is on the ________ to make the right decision about what technology to use.

List five perceived advantages of using standards to address environmental problems.

Including the costs of enforcement decreases the socially efficient level of emissions. Combining the marginal costs of enforcement with the MAC results in the socially efficient level of emissions increasing.

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

________ set standards that are unrealistic with today's technology in the hope that they will motivate the pollution-control industry to invent ways of meeting the standard at reasonable cost.

If the firm faced a standard of 40 units of emissions,what is the maximum amount of money it would be willing to spend on R&D to achieve the lower MAC?

The ambient quality of the water at various points downstream of a source of pollution depends on the quantity of emissions only. The ambient quality of the water depends on the quantity of emissions as well as the hydrology of the river (e.g. ,rate of flow,temperature,etc. ).

Emission standards specify the technologies,techniques,or practices that potential polluters must adopt.

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

The ________ measures the residuals produced per unit of output (e.g. ,SO₂ emissions per kilowatt hour of electricity produced) .

When marginal damages for a pollutant vary by region,time of day,or season,a(n) will not be socially efficient but that set the MAC curve equal to each MDC curve are socially efficient.

Under the burden is on the to make the right decision about what technology to use.