Week 2-3

Question 1

What are the 4 types of policy instruments?

Answer 1

1- Regulation
2- Voluntary action
3- Government expenditure
4- Market-Based Istruments (MBIs)

Question 2

Define Regulation

Answer 2

Any attempt by Govt. to influence behavior of consumers and/or businesses

Question 3

4 advantages of Regulation?

Answer 3

1- Accurate
2- Inexpensive when compliance level is high
3- Perceived as equitable
4- Public legitimacy

Question 4

2 disadvantages of Regulation

Answer 4

1- Inefficient

2- Ineffective (lack of implementation)

Question 5

Define voluntary action?

Answer 5

Action by individuals or organizations in the absence of legal requirements or financial incentives

Question 6

Define Government expenditure

Answer 6

Government expenditure provides incentives to businesses or individuals to switch to achieve environmental goals

Question 7

Weaknesses of voluntary action 4

Answer 7

1- Environmental effectiveness - questionable; Econ. effectiveness - low
2- Commitments low
3- Businesses may get involved with voluntary agreement to avoid stronger regulations
4- Lack of enforcement for non-compliance

Question 8

3 types of government expenditure?

Answer 8

1- Subsidy/ incentives: eg Toronto Hydro - $650 incentive for furnace replacement
Negatives of subsidy/ incentives:
- Behavior change uncertain
- It can be costly for the govt.
2- Investment in basic infrastructure eg. public transport
3- Subsidies for emerging technology/ industries
eg. wind/solar industry

Question 9

2 Disadvantages of MBIs

Answer 9

1- Economical

2- Political

Question 10

3 Advantages of MBIs

Answer 10

1- Revenue earned by MBI is further invested
2- Incentive for consumer behavior change
3- Revenue is collected through taxes

Question 11

Advantages of voluntary action 2

Answer 11

1- producers are free to decide how to meet goals

2- It forms a constructive co-operation between govt. and industry

Question 12

Define Market-Based Instruments (MBIs)

Answer 12

Instruments of environmental policies in which a change in technology, behavior or products is encouraged through financial incentives

Question 13

Define policy

Answer 13

A policy is a plan containing instructions about making decisions about the issuance, amendment, or revocation of instruments.

Question 14

Define policy instrument

Answer 14

The tools used by government to implement the policy and achieve the stated policy objectives.

Question 15

Define policy paradigm

Answer 15

A FRAMEWORK of ideas and standards that specifies the nature of the problem, the policy goals, and instruments needed to address it

Question 16

Define Traditional policy paradigm

Answer 16

Reactive, eg; end-of-pipe solutions

Question 17

7 types of standards (regulation) a2+b2+d+e+i

Answer 17

• atypical standard
• ambient standard
• ban
• behavior
• design standard
• emissions standard
• International agreement for common sink issues