Topic 1 - Introduction to Environmental Economics

Question 1

Economics

Answer 1

The study of how consumers, producers, and the government, make decisions about use and distribution of scarce resources.

Question 2

Environmental Economics

Answer 2

The study of how to use economic principle to manage better the environment and the economy; focused on regulating economic activity to achieve a balance between competing environmental and economic goals.

Question 3

Environmental Kuznet’s Curve - what is it and what does it represent?

Answer 3

It’s an inverted U-shaped graph that has pollution levels on the Y axis, and GDP on the x-axis. It shows that initially, the more a country makes in GDP, their pollution levels go up, however, at a point, it starts going back down as more developed countries can afford better emission control techniques.

Question 4

What are the three major issues and problems faced in Environmental Economics?

Answer 4

Air pollution, water pollution, and climate change.