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Material Type: Exam; Class: Environmental Economics; Subject: Economics; University: Oberlin College; Term: Unknown 1989;
Typology: Exams
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The final will be a two hour exam (About 1 1/2 times the size of the first midterm). I will give more time if needed so you won’t feel time-constrained; HOWEVER, I WILL take points off for obvious digressions or answers not directly answering the question or explaining an argument that answers the question. There will be 3 types of questions:
1/Exercise type questions as in the problem sets and the midterm. In order to study for these questions, just go over your problem sets (problem set answer keys) and the midterm. If you are able to redo the exercises from a blank page and UNDERSTAND the questions and the answers so you could put it in your own words and explain them to someone else, you should be fine. Just know that I will most probably combine some questions, rephrase them, change numbers, etc.
2/Questions on the debates: When writing the exam, I will RANDOMLY select 1 of the 3 debates. However, you cannot answer a question about a debate in which you directly participated so I will flip a coin for which of the other 2 debates will be addressed by the 4 students concerned. The debate questions will be answered in 2 or 3 paragraphs. You will have one full page to present the debate arguments. Your presentation should be concise, well organized, and to the point.
3/ Short answer questions will be directly taken from the list below and there will be no options. This list includes 18 questions that were assigned for the first midterm. The answers to these questions also need to be concise and to the point so make sure you identify the point BEFORE you start writing. One good way to identify the point is to ask yourself why I chose this question.. I will expect you to use material covered in class and the readings, focusing on points directly related to economics. These are short answers so a few sentences (a short paragraph) should be enough to answer them.
QUESTIONS FOR DEBATES:
In your answers, draw on material presented by your classmates in the debate.
QUESTION FOR DEBATE 1: Why do firms voluntary participate in programs to reduce their environmental impact beyond what is required by law. Identify 3 good reasons why they would do so. Can we rely on firms doing this in the future? Please, focus on the main/strongest arguments.
QUESTION FOR DEBATE 2: Recycling is often considered the least environmentally damaging way to manage the waste we produce. Our class debate highlighted some facts and logical arguments that qualified this assertion. First highlight the main reason(s) why recycling is considered a good thing and second, identify 3 reasons why recycling may not be as good a strategy as it sounds at first. Is it likely that we will rely more heavily on recycling in the future? Why or why not?
QUESTION FOR DEBATE 3: Should we strive to limit population growth if we want to save our global environment and natural resource base? What would you have said before you heard the debate and what would you say now? Identify the strongest argument(s) on each side of the debate.
1/ Questions from the midterm study guide
all problems”. Would economists rely on the “invisible hand” of the market (i.e. let the market take care of itself) in order to reach efficient outcomes in markets when the environment is adversely impacted? Explain.
Use a graph to illustrate your argument.
for a public good. Why do we not have Lindhal taxes in practice (one sentence)?
and explain why Garrett Hardin believes there is no “technical solution” to it.
policies. Briefly explain each. Give an example where two criteria can be enhanced simultaneously and one example when improving outcomes on one level will hurt performance on another.
in “The problem of Social Cost” about how we should approach the problem of externalities?
example. Taking account of this concept, would you still argue in favor “polluter-pay” principle in environmental policy.
that cause ozone depletion or global warming? Explain why or why not. Be as specific as possible.
price) monopolist will be less than if the good were produced under perfect competition. How would the monopoly result compare to Pigovian tax? To a pollution tax?
pollution taxes preferred.
although politically easier to adopt may not be as good as a tax in a long- term pollution reduction strategy.
deposit?
results in mandatory versus voluntary tradable permit schemes. Do you expect trading price to be lower or higher in a voluntary scheme. Why? Could the two coexist in these circumstances? (needs a little thinking here, with the help of the CESifo articles)
follow the “polluters pay principle”. Is this a fact that a firm who decides to retain permits so it is allowed to pollute is not incurring a cost? Explain
geographical area? Using the case of air quality give one example where regional restrictions should be applied and one example where regional restrictions should not be applied.
sustainability require the use of a zero discount rate in the valuation of policy options? Explain briefly using the idea of substitutability
issue. How can the use of a high discount rate hurt future generations? How can the use of a low discount rate hurt future generations?
yields is that the elasticity of substitution between natural capital and manufactured capital be equal or greater than one. Explain clearly what the condition means.
(make sure you identify the axes properly). What do you think is the main problem with this hypothesis, EVEN IF there is empirical evidence to support it? Explain clearly
theory. What are the main theoretical assumptions necessary to explain the conventional shape of EKCs using economic analysis.
levels as more countries have passed their turning points.
capita turning point. What are they? On a graph, draw the anticipated shape of these curves compared to the conventional EKC and explain their shape. (See Figure # 1 in Dagupta et al. JEP 2002 article assigned).
can be put in place at no net cost and possibly a net benefit so energy saving investments should be a no- brainer for firms and individuals. Why are economists skeptical of this argument?
protection? We understand that the science is crucial in understanding the effect of our actions on the environment but can science without economics inform us about the future of a planet where humans make decisions that affect the environment? Discuss (in one short paragraph)