ECON 361–Environmental and Ecological Economics

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ECON 361–Environmental and Ecological Economics

Review for Exam One

February 13, 2018

 

Part A—Be able to respond to the following types of short answer questions.

 

  1. Using a graph (with MAC and MD curves), find the socially efficient level of pollution, and be able to explain why no other level would yield as large a net benefit of reducing emissions.

 

  1. Show how the graph and the socially efficient level of emissions would change if

conditions that would impact costs or damages change.

ECON 361–Environmental and Ecological Economics

  1. Explain the role of enforcement costs and be able to show how the socially efficient level of emissions changes if enforcement costs are introduced.

 

  1. Describe the goals and requirements of the Paris Climate Agreement, and connect those to the article by Clifford Krauss and Diane Cardwell.

 

  1. Explain what Thomas Michael Power meant by “free market environmentalism” and his view about it.

 

  1. Give a short description of ecological economics, as offered by Edwards-Jones et al. in the introduction to their Ecological Economics textbook.

ECON 361–Environmental and Ecological Economics

  1. Using a table (like Table 5.2) to apply the equimarginal principle

 

  1. Finding the socially efficient level of output for a good, using a graph with market demand, marginal social cost, and marginal private cost curves.

 

  1. Finding the socially efficient level of output by equating MWTP and MC in a table

 

Part B—Be able to answer multiple-choice questions about the following concepts.

 

  1. Nonrenewable resources
  2. The fundamental balance equation (producer residuals, consumer residuals, materials and energy extracted from the natural environment, output of goods and services, consumer recyclables)
  3. Ambient quality
  4. The 1980 Comprehensive Environmental Response, Compensation and Liability Act and the calculation of damages to a valued resource
  5. Damages
  6. Point-source pollutants
  7. emissions
  8. effluent
  9. non-point source pollutants vs. point source pollutants
  10. positive externality vs. negative externality
  11. episodic vs. continuous emission
  12. Marginal willingness to pay and ability to pay
    13. common property rights
    14. direct benefit
  13. free rider
  14. threshold –meaning and how it appears on a graph
  15. non-accumulative pollutant
  16. public good
  17. production possibilities curve
  18. Private costs vs. social costs