Explore BrainMass
Share

Environmental economics

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1. Evaluate whether the following statements are true, false, or uncertain. Use specific models to support your answer where possible. .

a. The theory of environmental regulation that involves endogenous politics is an example of a positive theory of regulation

b. Although tradable permits and emission taxes both yield a cost-effective allocation of emission reductions, emission taxes are costlier to the economy because of tax interaction effects.

c. With a dominant firm in a market for pollution permits, it does not matter (for efficiency) how permits are initially distributed

d. Firms are less likely to exaggerate their potential abatement costs if the proposed policy is an emissions standard, rather than a tax.

2. Discuss at least three important distributional challenges associated with global climate change policy.

3. Describe four of the advantages of global price approaches to climate change advocated by Nordhaus (2007b).

© BrainMass Inc. brainmass.com October 25, 2018, 5:50 am ad1c9bdddf
https://brainmass.com/economics/international-financial-crisis/436950

Solution Preview

Statement: The theory of environment regulation that involves endogenous politics is an example of a positive theory of regulation

Analysis :

The statement is uncertain based on the fact that the positive theories of regulation are used to examine why regulation occurs and not the regulations that occur. Since the statement gives the assumption that the theory of environment regulation involves endogenous politics as being under the positive theory of regulation, this is not accurate.

Statement: Although tradable permits and emission taxes both yield a cost-effective allocation of emission reductions, emission taxes are costlier to the economy because of tax interaction effects.

Analysis:

This statement is uncertain since the tax interactions effects rate has not being given. This cost of the emissions tax would be costlier if the tax rates were comparatively higher than when then they are low. The emissions tax is a price instrument since it is fixes the prices based on free tax permits. The presence of tax interaction effects on the emissions tax levels.

Statement: With a dominant firm in a market for pollution permits, it does not ...

Solution Summary

Environmental economics are scrutinized.

$2.19
See Also This Related BrainMass Solution

Take a position on public policy, global sustainability, and global economics. Be able to support your position with evidence. Opinion may be required.

-------------------------------
It is argued that many environmental regulations are too costly. Do the economic effects of environmental public policy outweigh the costs?

Some policies have little or no direct monetary costs. These policies remove subsidies to special interests and restrict or deny access to national resources. Many environmental policies involve some very real costs that must be paid by some segment of society. In general, states with the strictest environmental regulations also had the highest rates of job growth and economic performance. Nations with the highest environmental standards also had the most robust economies and rates of job creation. Only 0.1% of job layoffs were attributed to employers to environment-related causes. In summary, we can draw several conclusions from our examination of the impact of environmental policy on the economy. Environmental public policy does not diminish the wealth of a nation; rather, it transfers wealth from polluters to pollution controllers and to less polluting companies. The environmental protection industry is a major job-creating, profit-making, sales-generating industry. The argument that environmental protection is bad for the economy is unsound. Not only is it good for the economy but environmental public policy is responsible for a less hazardous, healthier, and more enjoyable environment.

While this is certainly one view of environmental public policy, there are certainly rebuttals to this position, also based on notions of sound science and economic evidence.

Take a position on public policy, global sustainability, and global economics. Be able to support your position with evidence.

--------------------------------

I am looking for ideas and opinions to get my thoughts flowing that is supported by research. Thank you.

View Full Posting Details