Policies For Externalities

Question 1

Polluter pays

Answer 1

Recipient of biodiversity loss holds the property right, polluter pays external cost (biodiversity offsets)

Question 2

User pays

Answer 2

Polluter holds property right, beneficiary of biodiversity loss pays (payment for ecosystem services)

Question 4

Types of regulation

Answer 4

1. Private solutions
2. Direct regulation
3. Incentives
4. Hybrid

Question 5

Private solutions

Answer 5

1. Intrinsic/ extrinsic motivation
2. Social norms
3. Moral suasion
4. Coasian bargaining

Question 6

Folkways

Answer 6

Stem from & organize casual interactions

Question 7

Moreways

Answer 7

Structures difference between right & wrong

Question 8

Taboo

Answer 8

Strong negative norm

Question 9

Law

Answer 9

Norm that has been formalized into law

Question 10

Economic incentives vs. Social norms

Answer 10

Economic incentives:
-work faster
-more effective where society is organized through markets

Social norms:
-more effective where collective action dominates
-can erode over time

Question 11

Crowding effect

Answer 11

When an incentive changes a social norm, and an intrinsic motivation is substituted for an extrinsic one.

Question 12

Conditionality

Answer 12

Rewards based on verified conservation outcomes

Question 13

Additionality

Answer 13

Improve environment beyond what was already happening

Question 14

Moral hazard

Answer 14

After contract, agent acts in more degrading behavior

Question 15

Adverse selection

Answer 15

Before contract is signed, only those that are not most impactful actors (not a lot of bycatch in that fishery etc) are ones that sign contract