ISS 310 Quiz 2

What is the Polluter Pays Principle?

Polluters pay for the damage

What is an externality?

A cost or benefit affecting others without payment

What is an example of negative externality?

Air pollution

What is an example of positive externality?

A community garden

What do command-and-control policies do?

Set direct rules and limits

Which is an example of a command-and-control policy?

Emission standard

What do market-based policies use?

Incentives and money

What is a Pigovian tax?

A tax on pollution

What happens in tradable pollution permits?

Companies trade pollution allowances

What does the Coase Theorem say?

Private parties can solve issues if costs are low

Who are stakeholders?

People affected or involved

Which stakeholder supports a project?

A promoter

What happened in Yellowstone in 1995?

Wolves were reintroduced

What is egocentrism?

Nature has value on its own

What is anthropocentrism?

Humans are the focus

What is a major cause of biodiversity loss?

Habitat destruction

What is a tipping point?

An irreversible change after too much damage

What is self-regulation

A company regulating themselves

What are carbon markets?

Trading pollution allowances

What is an eco-label?

A label showing environmentally friendliness

What is policy diffusion?

Countries copying each other’s policies

Explain what a negative externality is

Bad side effects of something that hurt other people and the person causing it doesn’t pay

Explain what a positive externality is

Good side effects of something that helps other people and the person causing it doesn’t get paid for the benefit

Explain what command and control policy is

The government makes rules and forces people or companies to follow them, like setting limits on how much pollution a factory can release

Describe what happened in the wolf conservation case

Wolves were almost wiped out due to predator-control programs but then they were reintroduced in Yellowstone in 1995. The ecosystem improved and balance was restored.

What were examples of stakeholders in the wolf conservation case

Farmers, environmentalists, hunters, indigenous groups, and the government

What are policy instruments?

Tools governments use.

What are different policy instruments that can be used?

Regulatory (laws), economic (taxes, subsidies), informational (eco-labels), voluntary

What are voluntary agreements?

Negotiated environmental goals

Describe self-regulation

When companies regulate themselves because of reputation, consumer pressure, and certifications. It may be cheaper but not always effective.

Describe conventional regulation

Government rules, works well for clear pollution sources, but is expensive to enforce

What are the different types of stakeholders?

Promoters (support it), defenders (oppose it), latents (might care later), apathetics (don’t care)

What does stakeholder analysis look at?

Interest and power/influence

Describe private solutions/Coase theorem

People can solve problems without government. This works if property rights are clear and there are low transaction costs. It doesn’t work if too many people are involved or it’s hard to negotiate

Describe tradable pollution permits

When the government sets total pollution limits and companies buy/sell permits. The market decides the price and it’s efficient no matter who gets the permit first.

How do you fix, or internalize, externalities?

Taxes for bad things, subsidies for good things, and compensation

What is the definition of externalities

When someone’s actions affect others without payment

How is the Polluter’s Pay principle implemented?

Regulations, standards, and pollution charges.

Give examples of command and control policies

Emissions standards and technology upgrades.

Describe market-based policies

They internalize (fix) externalities through incentives (rewards)

Give examples of market-based policies

Pigovian taxes, subsidies, tradable pollution permits

What is the definition of a stakeholder

Individuals or groups with vested interests

What are the types of biodiversity?

Species, population, ecosystem, functional diversity

What are the drivers of biodiversity loss?

Habitat loss, overexploitation, climate change, pollution, invasive species, disease

What is command-and-control an example of?

Conventional regulation

What is command-and-control/conventional regulation helpful for? What is the downside?

Point sources; High enforcement cost

What are examples of command-and-control?

Clean Air Act, Clean Water Act

How is policy convergence seen?

Taxes, carbon markets, and environmental standards

Power/influence vs. interest

Power/influence: The quantity and types of resoucres they can mobilize to affect outcomes regarding that issue. Interest: The interest they take in that particular issue.

Describe latent stakeholders.

High influence, low interest (top left corner)

Describe promoter stakeholders

High influence, high interest (top right corner)

Describe apathetic stakeholders

Low influence, low interest (bottom left corner)

Describe defender stakeholders

Low influence, high interest (bottom right corner)

What is rewilding?

Restoring ecosystems by bringing back native species and letting nature return to its natural state.