Chapter 11 - Command and Control Flashcards
What is CAC?
Command and Control
In the case of Command and Control, what are the total abatement costs of meeting the standard?
Compliance Costs
What are the three types of environmental Standards?
- Ambient
- Emissions
- Technology
Define Ambient environmental standards:
Ambient environmental quality refers to the qualitative dimensions for the surrounding environment.
Define Emissions standards:
Never-exceeded levels applied to the quantities of emissions coming form pollution sources.
Define Technology standards:
Technologies, techniques or practices that potential polluter must adopt.
What are ambient standards normally expressed in?
Average concentration levels over some period of time
What are Emission standards normally expressed under?
Quantity of material per some unit of time.
What are the six aspects in which emission standards be set?
- Emission Rate
- Emission Concentration
- Total Quantity of Residuals
- Residuals produced per unit of output
- Residuals content per unit of input
- Percentage removal of pollutant
The language of regulation, emission standards are a type of ____________________.
performance standard
True or false: Technology standards don’t actually specify an end result.
True
What is the difference between performance standards and technology standards?
An emission standard sets a constraint on some performance criterion, whereas a technology standard dictates certain techniques be used
What kind of policy contains each of the three environmental emission standards?
National Air-pollution Control Policy
Define the Equimarginal Principle in emission standards:
In order to get the greatest reductions in total emissions for a given total abatement cost, the different sources of emissions must be controlled in such a way that they have the same MAC.
Could command and control standards bet set in accordance with the equimarginal principle?
Without the equiproportional cutback, there may be nothing to stop authorities from setting different standards.
What is the equation for Total Emissions?
= (Total Output) x (Inputs used per unit of output) x (Emissions per unit of input)
What are the two ways of reducing total emissions?
- Reduce total output
- Reduce amount of coal needed per unit of electricity
How are standards expressed in Output-based Standards?
Allowable emissions per unit of output
What happens if you multiply (Inputs used per unit of output) x (Emissions per unit of input)?
You get Emissions per unit of output
Define Perverse Incentives:
An incentive that actually works against the objectives of the regulation.
Define Technology Forcing:
Setting standards that are unrealistic with today’s technology in the hope that it will motivate the pollution-control industry to invent ways of meeting the standard at a reasonable cost.
What are the two primary dimensions of enforcement?
- Monitoring
- Sanctioning
What does the MPC curve represent?
Expected penalties from violating a standard
What is the only way to reduce noncompliance?
To raise the penalty function
In what two ways can you raise a penalty function?
- Raise monitoring activities to better detect noncompliance
- Raise fines for those who have noncompliance
What are the two distinctions in enforcing Technology Standards?
- Initial Compliance
- Continued Compliance
What are the two main problems with standard setting?
- Cost-effectiveness
- Equimarginal principle
What are three advantages of a Command and Control policy?
- Appear to be simple and direct
- Clear specific targets
- Conform to an operation of the legal system; define and stop illegal behaviour
What are the three factors that determine how a standard is set?
- Zero-risk
- Level at which MD begins to increase rapidly
- Level at which MD becomes vertical
When will the Uniform Standard not be efficient?
When MD vary by region, time of day, or season
