Which of the following statements is correct regarding valuation of the benefits of abatement? A) GDP calculations include an adjustment based on environmental quality (for example, worse environmental quality reduces GDP). B) Asking citizens for their willingness to pay for a ‘greener’ environment may result in policies that lead to improvements in environmental quality experienced by the poor, while not affecting the quality experienced by the rich. C) In the contingent valuation method, the pollution due to landfill waste is estimated using the differences in the house prices according to the proximity to a landfill site. D) In the hedonic pricing method, the cost of noise pollution near an airport is estimated using the differences in house prices according to their proximity to the airport
Which of the following statements is correct regarding valuation of the benefits of abatement? A) GDP calculations include an adjustment based on environmental quality (for example, worse environmental quality reduces GDP). B) Asking citizens for their willingness to pay for a ‘greener’ environment may result in policies that lead to improvements in environmental quality experienced by the poor, while not affecting the quality experienced by the rich. C) In the contingent valuation method, the pollution due to landfill waste is estimated using the differences in the house prices according to the proximity to a landfill site. D) In the hedonic pricing method, the cost of noise pollution near an airport is estimated using the differences in house prices according to their proximity to the airport
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following statements is correct regarding valuation of the benefits of abatement?
A) GDP calculations include an adjustment based on environmental quality (for example, worse environmental quality reduces GDP).
B) Asking citizens for their willingness to pay for a ‘greener’ environment may result in policies that lead to improvements in environmental quality experienced by the poor, while not affecting the quality experienced by the rich.
C) In the contingent valuation method, the pollution due to landfill waste is estimated using the differences in the house prices according to the proximity to a landfill site.
D) In the hedonic pricing method, the cost of noise pollution near an airport is estimated using the differences in house prices according to their proximity to the airport
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