Environmental Econ (ECON 3190) RAT5

Which of the following pollution control regulations is generally cost effective for the level of abatement achieved by the regulation

a. Technology standards

b. Uniform abatement standards

c. Emissions taxes

d. Benefit based standards

c. Emissions taxes

A two-part emission charge

a. Would implement a high initial emission charge, then a lower charge for higher levels

b. is implemented when flat charges don't reduce emissions sufficiently

c. may allow a certain level of emissions to go untaxed then taxes emissions above that

d. both a and c

c. may allow a certain level of emissions to go untaxed then taxes emissions above that

All else constant, raising an emission charge

a. might be effective if there is a lower desired level of ambient quality

b. results in lower levels of emissions

c. induces lower levels of abatement

d. both a and c

b. results in lower levels pf emissions

Incentive based pollution control regulations include:

a. cap and trade programs

b. technology-based standards

c. emission standards

d. all of the above

a. cap and trade programs

Offset trading:

a. increases overall emissions

b. allows new firms to emit by paying existing firms to reduce emissions below standards

c. Creates an incentive for potential sellers of offsets to increase emissions

d. does not require verification of emission reductions

b. allows new firms to emit by paying existing firms to reduce emissions below standards

The complication of nonuniform emissions can be addressed by:

a. equi-proportionate cutbacks in emissions

b. a uniform emissions charge since that would be cost effective

c. zoned emission charges

d. cannot be effectively addressed with emissions charge

c. zoned emission charges

Transferable emission permit programs:

a. establish a total allowable level of emissions

b. end the open access use of the air or water in terms of the regulated pollutant

c. are an example of a property rights based or incentive based solutions

d. all of the above

d. all of the above

Offset trading

a. is designed to restrict economic growth

b. encourages potential offset sellers to reduce emissions beyond the required amount

c. suffers from controversy over allocation of initial rights

d. is effectively the same as emissions taxation

b. encourages potential offset sellers to reduce emissions beyond the required amount

Which of the following types of pollution control regulation provides the most flexibility for producers in terms of how and how much they reduce emissions

a. emission taxes

b. emission standards

c. input charges

d. technology based subsidies

a. emission taxes

If the emission charge exceeds the marginal cost of abatement, rational firms will:

a. increase abatement

b. pay the emission charge and not abate

c. pay more in pollution taxes than if MAC exceeds than the emission charge

d. prefer a technology based standards

a. increase abatement

Environmental subsidies for emission reductions can be implemented as:

a. tax credits for purchases of pollution controlling equipment

b. grants to encourage environmental programs

c. cost sharing to cover a portion of the costs of abatement investment

d. all of the above

d. all of the above

Transfer coefficients

a. define how emission translate to damages when there are nonuniform emissions

b. define how emissions translate to costs of abatement when emissions are nonuniform

c. are used to adjust for trades across zones with differential marginal emissions damages

d. both a and c

d. both a and c

Tradable pollution permit systems have what advantage relative to emission charges

a. they provide more certainty about the overall level of emissions

b. competitive trading markets are ensured

c. they create pollution hot spots or areas of high pollutant concentration

d. establishing the initial allocation of property rights is uncontroversial

a. they provide more certainty about the overall level of emissions

Environmental subsidies for emission reductions:

a. are designed to increase tax revenue

b. create an opportunity cost for emitting pollution

c. control the overall level of abatement

d. all of the above

b. create an opportunity cost for emitting pollution