In the context of environmental economics, the "tragedy of the commons" refers to:A) The efficient allocation of resources when property rights are well-defined and enforced.B) The overuse and depletion of common - pool resources due to individual incentives tomaximize personal gain, leading to suboptimal outcomes for society.C) The creation of externalities that are fully internalized by market participants.D) The optimal provision of public goods through voluntary cooperation among individuals.

Environmental economists refer to this situation as the "tragedy of the commons," which occurs when…

Answered: In the context of environmental…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is an example of a positive externality? A) Air pollution from a factory B) Water contamination C) Vaccination against a contagious disease D) Noise pollution from a construction site
The free-rider problem is that: free public transportation is overcrowded. people will not voluntarily pay for something that they can obtain without paying. government supplies goods at no charge to people who can afford to pay for them. public goods often create large external costs.
The four categories present potential responses to environmental problems. Place each response in the category that best matches it. It is possible that a category may end up with more than one scenario or none at all. Command‑and‑control regulation (e.g., environmental standards) Marketable or tradable pollution permits (e.g., cap‑and‑trade) Pollution or emissions tax Well‑defined property rights The government requires that auto manufacturers limit pollution to a specified threshold. An auto manufacture is charged a fee per unit of pollution emitted into a river. Auto manufactures are allowed to pollute as much as they wish, provided that they have purchased a sufficient number of pollution vouchers. The government requires that auto manufacturers use new, cleaner technology in producing cars. A steel mill pays nearby homeowners to compensate them for the noise they must put up with as a result of the steel manufacturing process.
Summarize how the first, second, and third waves of environmental policy in U.S. history differed from one another. Describe two current priorities in international environmental policy.
Use the model of environmental pollution to model the following changes in a polluting industry to: i) the socially optimal level of pollution; ii) the total abatement costs; and ii) the total damage costs (а) A new technology is invented that allows firms to reducе pollution associated with each level of production output. (b) The government announces a new commitnment to more strictly enforce current environmental regulations. (c) A new study finds the pollutant in question to be more carcinogenic than originally thought.
Give three examples of activities accompanied by external costs and benefits.
Define the concepts of public good, non-excludable, non-rival, and tragedy of the commons.
Why might a wetland ecologist scoff at an economist when the economist claims to have come up with a "value" for wetlands, for use in benefit-cost analysis? Keep in mind that economists and ecologists tend to have very different ideas about the concept of “value” for environmental resources? Explain the differences between the concept of “existence value” for an economist, and the concept of “intrinsic value” for an ecologist.
A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently Pays less for the good or service benefits from a market transaction pays a pollution tax to balance social costs
Many restaurants have chosen not to serve shark fin soup, while many others continue to serve it. What are the possible reasons behind each of these decisions. Is there a way to balance human wants with economic and environmental impacts? Explain your reasoning.
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
These two situations have arisen: Agricultural technologies become available that if used reduce adverse effects fromfarming on environmental quality Water from a uranium mine is leaking into Kakadu NationalPark For each case you are to identify possible external effects that might occur and explain the conditions that would need to exist, and what the government or the affected parties could do, to change these negative situations for the betterment of one or both parties?

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