For environmental economics, question number 2 only please-- thank you! (9 points each)For these questions, you must state "true," "false," or "uncertain" and argue your case (roughly 3to 5 sentences). When appropriate, the use of graphs will make for stronger answers. Credit willdepend entirely on the quality of your explanation.1. If the industry facing regulation for its pollutant emissions has a lot of political capital, directregulatory intervention will be more viable than an emissions tax to address this marketfailure.2. A stated-preference method will provide a measure of the value of Komodo dragons that ismore accurate than the value estimated through application of the travel cost model tovisitation data for Komodo National Park in Indonesia.

Answer: Uncertain. A stated-preference method, such as contingent valuation, can provide a measure…

Answered: (9 points each) For these questions,…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 4QR

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Similar questions

Name two public goods and explain why they are public goods.
Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermined technologies. In the second approach, the U.S. government determines which technologies are cleaner and subsidizes their use. Of the two approaches, which is the command-and-control policy?
Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits include environmental, recreational, health, and industrial benefits.) Using the information in Table 12.8, calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. See Production, Costs and Industry Structure if you need a refresher on how to calculate marginal costs. What is the optimal level of sewage for this city? Why not just pass a law that films can emit zero sewage? After all, the total benefits of zero emissions exceed the total costs.
What can government do to encourage the development of new technology?
In what ways (it) company investments in research and development create positive externalities?
Can extreme levels of pollution hurt the economic development of a high-income country? Why or why not?
Why is a football game on ESPN a quasi-public good but a game on the NBC, CBS, or ABC is a public good?
Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all local people to enter the parks or to injure either the elephants or their habitat in any way. In a second approach, the government sets up national parks and designates 10 villages around the edges of the park as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park. Consider the different incentives of local villagers-who often are very poor-in each of these plans. Which plan seems more likely to help the elephant population?
What are better-defined property rights and what incentive do they provide to account for external costs?
The Gizmo Company is planning to develop new household gadgets. Table 13.4 shows the companys demand for financial capital for research and development of these gadgets, based on expected rates of return from sales. Now, say that every investment would have an additional 5 social benefitâ€”that is, an investment that pays at least a 6 return to the Gizmo Company will pay at least an 11 return for society as a whole; an investment that pays at least 7 for the Gizmo Company will pay at least 12 for society as a whole, and so on. Answer the questions that follow based on this information. If the going interest rate is 9, how much will Gizmo invest in R. How much will the firm invest if it also receives the social benefits of its investment? (Add an additional 5 return on all levels of investment.)
What arguments d0 low-income countries make in international discussions of global environmental clean-up?
Will the demand for borrowing and investing in R&D be higher or lower if there are no external benefits?

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