13) Governemt Intervention In The Environment

Question 1

What are the 3 functions of the environment

Answer 1

• provider of resources
• provided of amenities (useful or desirable)
• absorber of waste

Question 2

What does the kuznets curve show

Answer 2

• the link between economic development and pollution
• as countries become more developed, they move from low mechanised primary sectors to more mechanised secondary sectors which pollute more
• pollution reached a maximum point, then as development increases further countries rely more on tertiary sector and start to pollute less, or find greener methods

Question 3

What determines whether economic growth will cause environmental degradation

Answer 3

• High and fast levels of growth ie industrial revolutions are most likely to be bad for the environment
• polices to ensure sustainable development and reduce the speed of growth may reduce the negative effects on the environment

Question 4

How could taxes help the environment

Answer 4

Taxes on goods that are bad for the environment to discourage supply and demand, raising the price eg VAT Or specific taxes
- the taxes could be used to pay for greener methods and internalise the negative externalities of production

Question 5

How could subsidies help the environment

Answer 5

• encourage more production of merit goods eg recycling schemes by lowering the costs of production
• no revenue gained and opportunity cost

Question 6

How could regulation help the environment?

Answer 6

Mandatory recycling schemes or banning some goods being produced that are bad for the environment
-regulations may be hard to enforce and police, and is rewards are higher than fines then production may continue