Global Air Pollution Flashcards
What is a nash equilibrium?
A Nash Equilibrium is a situation when no player has anything to gain by changing only his own strategy unilaterally.
In other words: no player has an incentive to deviate from his/her chosen strategy unless other player(s) change their strategy/ies as well.
Does a nash equilibrium imply a socially optimal outcome?
A Nash equilibrium may coincide with the socially optimal and/or cooperative outcome.
However, it often does not
What matters for non-uniformly mixed pollutants?
For non-uniformly mixed pollutants the location, timing and the amount of the pollutant matters.
Measurement stations (or areas of concern) are often referred to as receptor sites.
The key indicator used is the concentration level at the receptor site (not the emissions level at the pollution site).
What is the transfer coefficient?
Transfer coefficient ai captures the increase in concentration at the receptor if a unit of pollution is discharged at source i.
In most cases the source closer to the receptor will have a larger transfer coefficient.
Marginal cost of concentration reduction?
The marginal cost of concentration reduction (MCC) is the marginal abatement cost (MAC) multiplied by the transfer coefficient (a).
It represents the cost of reducing a unit of concentration at the receptor site.
It is no longer the cost of emissions reduction but rather the cost of concentration reduction that is the key to find the most cost-effective policy.
What is an ambient standard?
Ambient standard is an upper limit on the concentration level of a specific pollutant in the air, soil, water, etc. measured at the receptor.
The policy requirement is to remain within a certain level of concentration when measured at the receptor.
What is the difference between an emissions and ambient standard?
Ambient standards are analogous to emission standards except that emissions standards are set for each firm (pollution source) while ambient standards are set for each receptor site.
What is the equimarginal principle in this context?
The cost-effective solutions is achieved when:
the marginal costs of concentration reduction are equal for all sources, and the ambient standard is met
TF - As transfer coefficients increase, the impact on concentration levels from a unit of emissions decreases and hence the higher the ambient charge is per unit of emissions
False - The smaller the transfer coefficient (e.g. the further away the source is to the receptor) the smaller the impact on concentration levels from a unit of emissions and hence the lower the ambient charge is per unit of emissions.
An ambient allowance?
An ambient allowance entitles the owner to cause the concentration to rise at the receptor by a specified amount.
What “rule-of-thumb” measures to approximate the spatial complexity do governments use?
Predefined zones within which the sources have the same transfer coefficient
Restrictions to trade between zones
“Exchange rates” (i.e. ratios of transfer coefficients) applied to trades between zones.
