(a) Explain what is meant by command-and-control in terms of a demand side climatechange policy. What are the pros and cons of this as a poliey option?(b) Using a diagram, explain how a carbon tax could help reduce pollution.(c) Using a diagram or diagrams, explain how a cap-and-trade scheme could result inpollution reduction.

Traditional command-and-control regulatory programs may be replaced by market-based environmental…

Answered: (a) Explain what is meant by…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 13SQP

See similar textbooks

Similar questions

The climate policy toolkit has, to-date, mostly focused on demand side policies (i.e. policies that affect the pollution demand curve), some of which are ‘command-and control’ and others are market based (e.g. cap-and-trade schemes, carbon taxes). (a) Using a diagram or diagrams, explain how a cap-and-trade scheme could result in pollution reduction. (b) What is the Emissions Reduction Fund and what are its pros and cons? 1(c) Of the following four policy options, which one do you favour as a demandside policy and why? i. command-and-control in terms of a demand side climatechange ii. carbon tax iii. Emissions Reduction Fund iv. cap-and-trade scheme
What makes climate change an economic problem? And if it is, how should policy dealwith it?Your answer should include reference to at least three of the following aspects of theproblem:a) Climate change as an externalityb) A carbon tax vs. cap and tradec) Cost-benefit analysisd) Assessing costs to future generationse) Environmental dynamics
The climate policy toolkit has, to-date, mostly focused on demand side policies (i.e. policies that affect the pollution demand curve), some of which are ‘command-and control’ and others are market based (e.g. cap-and-trade schemes, carbon taxes). Suppose the government decided to issue tradeable permits for a certain form of pollution, does it matter for economic efficiency whether the government allocates the permits to firms or whether it auctions them off? Why or why not?
A corrective tax on the emission of carbon wastes is one possible way to reduce the economic costs associated with global warming. Critically analyze the Pigovian or Corrective Taxes?
Emission charges and cap-and-trade systems are the two dominant market incentive-based approaches for the reduction of emissions. Describe how an emission charge or tax works. Describe how a cap-and-trade system works. Contrast the two systems: what are the fundamental differences between them? Do those differences matter? Provide two examples of jurisdictions that impose a carbon tax. Provide two examples of jurisdictions that imposes a cap-and-trade regime. As the manager of a business that produces emissions, which system would you prefer to face? Why?
Explain how external costs and benefits affect the trade-offs faced byeconomic decision makers.
Please provide correct answer in detail... Provide three reasons why it is important for environmental economists to adhere to a code of ethics, whether the code of ethics is formal (documented and sanctioned by an established group) or informal (simply a matter of thinking about what is right, possible spillover effects, and what advice would be appropriate).
From economic perspective, when is government intervention in the market justified?a) when there is an externality or there is an absence of clearly defined property rights (e.g. an absence of rules governing fishing on the high seas)b) when companies pursue profit maximization as their solve objective c) when consumers pursue only their own interests in reaching purchase decisionsd) all the abovee) none of the above
How does the precautionary principle work? Describe how the precautionary principle would be applied to shape policy in relation to a particular environmental issue, such as global warming or deforestation.
Give typing answer with explanation and conclusion One advantage of an emissions tax over a cap-and-trade system is that a. permit markets can have transactions costs that taxes do not. b. taxes put a price on pollution, but cap-and-trade systems do not. c. once a cap-and-trade system is in place, there is no way for the government to adjust the price of permits. d. taxes are always popular.
To evaluate potential policy options that address emissions and climate change, economists often recommend a thorough cost-benefit analysis, in which the avoided environmental and human health damages are weighed against the["marginal abatement costs", "marginal abatement benefits"] . Most estimates by environmental economists suggest that the benefits of emission reduction are somewhere between 5-20% of world GDP, while the costs are between 1-4%. Using a cost-benefit analysis, this would imply that these policies ["should", "should not"] be implemented. The resulting policies can take the form of ["preventive", "adaptive"] strategies, those that reduce damages resulting from climate change, or ["preventive", "adaptive"] strategies that reduce emissions.
Describe one type of negative market externality with a forest as it relates to climate change. Explain what the negative externality is and what it means for the market with no government intervention. b) Now describe two different ways the government could intervene in the market you described in the previous question. How does each government action change that market and what are those changes c) Identify two important ways that a natural resource economist can support the government interventions you have described in this question

SEE MORE QUESTIONS

Recommended textbooks for you

Micro Economics For Today

Economics

ISBN:

9781337613064

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Economics For Today

Economics

ISBN:

9781337613040

Author:

Tucker

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Micro Economics For Today

Economics

ISBN:

9781337613064

Author:

Tucker, Irvin B.

Publisher:

Cengage,

Economics For Today

Economics

ISBN:

9781337613040

Author:

Tucker

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS