8.3 cost comparisons

Question 1

abatement

Answer 1

the ending, reduction, or lessening of something. In an environmental context, reducing pollution

Two forms:
- Cleanup after the it has been emitted
- Reduction at the source
* Lowering emissions per unit of output
* Reducing output

Question 2

sulfur dioxide

Answer 2

Emitted from burning fossil fuels, typically for electricity generation.

Can contribute to acid rain and smog, but also creates health issues if it is inhaled directly

Question 3

clean air act amendment (1977)

Answer 3

These amendments followed a best available technology (BAT) approach to controlling SO2 emissions.

Any new power plant that was to be built after 1977 would be required to chave a flue scrubber.

Question 4

which do economist prefer: command and control or incentive-based regulations?

Answer 4

Generally speaking, economists find that command and control policies are expensive ways in which to control environmental problems

Economists tend to prefer incentive-based approaches like Pigovian taxes or cap-and-trade systems.