Kraft & Furlong Chapters 7 & 11

Budgetary and Monetary Policy / Environmental and Energy policy

Consumer Price Index (CPI)

a measure of inflation, between 1-4% is “tolerable”, but that could be overstated by 1.1%

balance of trade

exports v. imports (positive balance means exporting more)

national debt

accumulation of all deficits the nation has run

fiscal policy

gov. taxing and spending tools

monetary policy

controls “money supply”/money in circulation, FED implements policy w/o congress or President, works quicker than fiscal policy, decisions made behind closed doors

tax expenditures

subsidies and tax incentives

regressive tax

same tax rate for all

progressive tax

increases tax by income

line-item veto

deleting specific items w/o getting rid of the whole bill

supply-side economics

gov. can increase economic growth by cutting taxes for wealthiest individuals, who will reinvest in economy

entitlement program

payment obligations determined by law, not budget of program (ex: Medicare, SS)

Intergovernmental Panel on Climate Change (IPCC)

environmental report from UN

climate change

rising temps, other global regional weather changes because of GHGs

Paris Agreement

effort to keep increase in global temps below 2 C or 3.6 F

Clean Power Plan

Obama plan to phase out older coal burning power plants and make stronger fuel economy standards to reduce gasoline usage 

Environmental Protection Agency (EPA)

independent federal regulatory agency responsible for most eco-policy (like pollution control)

Sustainable development

economic growth compatible with environmental systems and social goals

environmental policy 

gov actions affecting environment and natural resources

collaborative decision making

industry stakeholders talking w/gov officials

environmental impact statement (EIS)

NEPA requirement that offers public assessment of environmental impacts of an action

Toxics Release Inventory (TRI)

published annually, describes toxic chemicals released into air, water, and land, w/locations of facilities 

command and control/direct regulation

environmental quality standards are set and enforced according to language of each statute, tells agency how to make choices

environmental stewardship

protection of resources for the future

multiple use

any natural resource can be used for multiple purposes

user fees

fees for use, like in national parks (market incentive)

resource subsidies

user pays gov. less in fees than cost to taxpayers of providing services to these businesses

ecosystem-based management

shift towards protecting habitats + increasing biodiversity

Organization of the Petroleum Exporting Countries (OPEC)

association of oil producing and exporting nations that fuses mutual interests and stabilizes oil prices/consumption

Corporate Average Fuel Economy (CAFE) standards

mandates average fuel efficiency for an automaker’s line of cars, sets min fuel economy standards, but only for avg.

cap-and-trade policy

relies on market mechanisms where cap is set and trading of permits/allowances is allowed within the cap

intergenerational equity

what’s fair to future generations