3.5 Environmental regulation

Question 1

Environmental issues caused by organisations can affect h______ and s_____ of stakeholders and cause widespread environmental damage including g____ w______ and e________ of animal and plant species.

Answer 1

health
safety
global warming
extinction

Question 2

Why is there a need for environmental regulation?

Answer 2

Because the free market cannot properly discipline organisations for their practices.

Question 3

What are the two market issues that require regulation of the environment?

Answer 3

Information asymmetry - stakeholders do not have full information on the impact of organisations on the environment

Public goods - organisational behavior can pollute water, air etc.

Question 4

What is the Kyoto Protocol?

Answer 4

An international treaty signed to extend a previous climate change convention. The purpose of the protocol is to limit global warming by controlling human made carbon emissions.

Question 5

Which UK regulator implements and enforces environmental law?

Answer 5

The Environment Agency (EA)

Question 6

The Environment Agency is an executive non-departmental body sponsored by which government department?

Answer 6

DEFRA (Department for Environment, Food and Rural Affairs)

Question 7

What is the name of Ireland’s environmental protection body?

Answer 7

The Environmental Protection Agency