8.1 types of pollution control

Question 1

what forms of law deal with spillover costs?

Answer 1

common law - based on judicial precedent

tort nuisance -When the plaintiff’s use and enjoyment of her property is interfered with substantially and unreasonably through a thing or activity. Courts may grant injunctive relief or damages.

Question 2

injunctions

Answer 2

are court ordered to stop an activity

can be lifted if one party compensates the other

Question 3

polluter pays principle

Answer 3

The party that is emitting the pollutant is the “cause” of the externality and thus that party should pay damages.

Question 4

coase theorem

Answer 4

If property rights are identifiable and transferable, transaction costs are low and contracts enforceable then markets will produce the efficient quantity of a good regardless of the initial allocation of rights

Question 5

incentive-based regulation

Answer 5

“indirect regulation”

These regulations borrow ideas from the market in the way they try to solve the problem.
* Pigovian Tax
* Cap-and-Trade

Question 6

command and control regulation

Answer 6

Direct regulation of an industry or activity in which legislation describes what is permitted and what is illegal.
* Effluent Guidelines
* Best Available Technology Requirements

Question 7

effluent guidelines

Answer 7

restrictions on the amount of pollution that firms are allowed to emit. These guidelines do not require facilities to install the particular technology identified by EPA.

Question 8

Best Available Technology Economically Achievable (BAT)

Answer 8

Technological requirements that meet the EPA’s effluence guidelines and pass their cost-effectiveness analysis.