Hussein, A. KAP 6-8. Flashcards
TEC?
Transferable emissions credits.
- Pollution right?
A credit, consist of a unit (tons/year) of a specific pollutant.
- Grandfathering principle?
Credits are related to size of firms historical level of emissions. Only have to pay for additional credits they need. New firms need to pay for all credits.
- Bubble Policy?
Company with several sources, factory can treat all as a single one = can emit more than others. Factory remains within emission standards + don’t need to meet standard for each source.
- Banking Policy?
Pollution credits can be saved for later use, when needed.
- Market power?
Old firms can refuse to sell to new firms, limit competition & a barrier to enter market.
- Relocation effect?
Risk that firm sell/not buy credits & move factory to less regulated area/country.
- Hot-spots?
High local concentration of pollution. Firms with many factorys, can choose to emit bigger amounts in 1 location by offset it by reduction in another location.
- What is TEC?
A market based pollution control & policy instrument. A artificial market for pollution rights, traded. Credit = permit of unit of X pollution.
- Porter Hypothesis?
That regulations force firms to become more productive & innovative.
- Market pricing?
Env improvement causes in/decrease in real in/outputs.
Timber /minerals = market goods.
Decrease in extraction of raw materials = measure loss in C Surplus.
Also a opportunity cost included.
- Willingness to pay?
Maximum amount of $$ that member are WTP for improvment in env or reduce x/damage.
Wtp= area under MDC curve.
WTA?
Minimum monetary compensation that member need to accept Env projects.
- Revealed Preference?
WTP = by observing ‘actually purchasing behavior of resource users, in real-market. Used in:
Market pricing
Hedonic pricing
Household production
Aversive expenditures
Travel cost
- Consumers Surplus?
Diff between what C are WTP & what they actually pays for X in a market.
- Replacement cost?
measure of benefits when damage has been avoided, by improved Env conditions + market value of cost to restore / replace the damage.
- Replacement cost + WTP = ?
Measures gain from avoided damage & replacing lost service. Assuming that public will accept trade-offs between lost & gained due to restoration.
- Hedonic Pricing?
Statistiv method. How diff
Env features can increase/decrease land/house value. Lakes - landfill.
- Hedonic pricing + WTP =?
Their WTP for avoiding X associated with undesirable feature/landfill, by paying higher prices for house farther away.
- Household Production?
Looking at households expenditures on goods/service, how they value something.
Benefits from improvement in Env quality. $$ spent on goods/services to avoid damage. Ex: soundproofing, water filters.
- Household Production + WTP = ?
WTP - pay money/price to avoid specific Env damage.
- Travel cost method?
Measures benefit/ WTP for experience, looking at cost of travel to site.
- Different methods in Revealed Preference valuation?
Replacement cost.
Hedonic pricing.
Household Production.
Aversive expenditures.
Travel costs.
SP - Stated preference valuation?
Estimate non-use values of Ecosystem services. WTP = asking people to state their preferences by using surveys.
- CVM method?
Contingent valuation method: asking to provide monetary value of Env resources.
- CBA - Cost-benefit analysis?
Tool used to appraise (bedömma) policies & public projects. Bridges, roads, dams, airports. And their net contribution to social benefits.
-> investment is profitable if ‘‘monetary’’ value exeeds the costs vs social benefits.
- P1: Actual Pareto Improvement?
No members of a society become worse of, and at least ‘one’ becomes better off = project should be accepted.
- P2: Potential Pareto improvement?
(Kaldor-Hicks): Gains from the project can compensate the losers, and they still remain better off in their economic condition, than they were before. (teoretiskt, ingen komp behöver utgå..)
- Net Present value?
- value of things today AND to things/project in the future.
- present value of benefits, minus - present value of cost = X.
-If Net present value is positive, the project is profitable.
- Public & Private sectors uses which analysis method?
Public: CBA, Cost-benefit analysis.
Private: Capital budgeting.
- Double counting?
Risk to count some internal/ external/social cost more than once.
Ex: timber + conservation= decline in supply - increase $ in construction/furniture. But, the increase should not be incl pga. secondary effects = $ increase in the economy.
- What is Discount rate??
% rate, decide how to value future events, compared to events taking place today..
- Precautionary Principle?
Action against certain practices, potential for damage & consequences. No scientific proof needed. Ex: Global warming, ozone, new species.
- CEA, Cost-effectivness analysis?
A least-cost methods, too achieving stated Env goals etc. Ex: Clean up of a river + specific water quality. Cost is more important, than benefits: bang for the buck.
- EIA, Environmental Impact analysis?
Tracing the relevant physical/ Ecological linkages to Env impact of different projects.
- Risk Assessment?
Scientific aspect, including data to describe the form & characteristics of risks, vs harm to nature/env/humans.
-How risky is the situation?
- Risk Management?
The process incl. Risk Assessment and its used with other information (data, costs, economic/social consequences) to make regulatory decisions.
- Use value?
what we get from Env/nature: fishing, hiking, raw materials/using inputs from env.
- Non-use values?
Option v: for future, Grand Canion, may wisit in the future.
Bequest v: selfish value, like the idea of a rainforest.
Existence: for others, animal, people in the rainforest.
- Aversive expenditures?
Households are wtp to avoid damage & get a specific Env standard.
Ex: install ventilation system, water filters.
- 2 NPV, Net present value types?
- NPV > 0: project is societal profitable.
- NPV < 0: project is not societal profitable.
- Difrent types of Discount rates?
Used to calculate present values (nuvärden) of cost & benefits.
- +rate: events in the future, has a lower value, than if it occurred today.
- 0 rate: events in the future, has the same value, as if it occurred today.
- -rate: events in the future, has a higher value, than if it occurred today.
- What is Discounting, in CBA?
Calculate backwards, to get future costs in present value/nuvärden.
