Unit 6: Slideshow: Setting Environmental Targets

Question 1

What determines the best policy for controlling pollution

Answer 1

-Function of Pollutant Type
-Stock vs. Flow
-How pervasive are the emissions/ sources

Question 2

What are the 2 Types of Pollutants

Answer 2

1) Flow: short term-absorbed harmlessly
2) Stock/ Cumulative: does not dissipate/ accumulates

Question 3

What are Hotspots

Answer 3

locally high levels of pollution

Question 4

What is Marginal Damage Cost

Answer 4

Relationship b/w quantity of pollutant and marginal damage it causesq

Question 5

What are the components of Marginal Damage

Answer 5

Emissions
Ambient Concentrations

Question 6

What are the influencing factors of marginal damage of pollution

Answer 6

Pollutant
Region
Climate
Timing
Cultural Values
Income Levels

Question 7

What are Marginal Abatement Costs

Answer 7

Policy tools to reduce emission levels
Changing source location

Question 8

What is Optimal Pollution

Answer 8

Marginal Damage Cost = Marginal Abatement Cost

Question 9

What are the issues with optimal pollution

Answer 9

Uncertainty
Assumes Weak Sustainability
Ignores Distribution of Costs & Benefits
Ignores Marginal Utility of Money-different valuations

Question 10

Pollution Control Policies

Answer 10

1) Command & Control
–Emissions standards
–Tech Based Regulations
2) Market Based
–Pigouvian Taxes
–Tradeable Permits