Lecture 22- Environmental Economics And Politics Flashcards
Does the USA have a pure free-market or capitalist market economic system?
A capitalist market economic system
What is an economy?
A system of production, distribution, and consumption of goods and services that satisfies peoples wants or needs
What is the problem with calculating GPI?
It is difficult to quantify environmental and human factors
What is the problem with including full costs in market prices?
Prices would be higher and competitors would charge a lower price
How can full cost of producing goods and services be internalized?
Enforced by government through economic rewards and punishments
Why isn’t full cost pricing implemented by governments?
Opposed by powerful economic interests that pay for election campaigns
Why are fossil fuels so much cheaper than alternative forms of energy?
Subsidized by government tax breaks and few government incentives for alternative forms of energy
What is a carbon tax?
An environmental tax on CO2 emissions
What is emissions trading or cap and trade?
A trading system of economic incentives for reducing emissions by marketing the limit on the quantity of emissions
