Chapter 5: Damages

Question 1

Pollution Damages are the negative..

Answer 1

impacts that users of the environment experience as a result of environmental degradation

Question 2

Damage function is the relationship

Answer 2

between the quantity of a waste product and the value of its damages

Question 3

Emission damage function is the relationship between

Answer 3

the waste from a source, and the resulting damages to the env

Question 4

Ambient damage function is how

Answer 4

damages are related to the concentration of a waste product contained in the ambient env `

Question 5

Marginal Damage function is the

Answer 5

change in damages resulting from a 1 unit increase in emissions or ambient concentration

Question 6

What affects MD?

Answer 6

Location, knowledge, taste, ability to pay,

Question 7

Abatement Cost

Answer 7

Cost of reducing the Q of pollution being emitted

Question 8

Abatement costs include

Answer 8

reducing output or switching input
changing production tech
treating wastewater
residuals recycling

Question 9

When technology improves, MAC shift

Answer 9

down

Question 10

Equimarginal Principle

Answer 10

total production is distributed among sources to equalize MC

Question 11

At MAC = MD, the sum of what is minimized?

Answer 11

Total social cost (total cost of damages) + Total Abatement Cost