Environmental Policy
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Course Introduction
Environmental Policy explores the development, implementation, and impact of policies designed to address environmental issues at local, national, and global levels. The course examines key legislative frameworks, regulatory agencies, and international agreements shaping environmental governance. Students analyze policy-making processes, the roles of stakeholders, and case studies related to topics such as climate change, pollution, biodiversity conservation, and sustainable resource management. Emphasis is placed on evaluating the effectiveness of policy instruments and the challenges of balancing economic, social, and ecological priorities in environmental decision-making.
Recommended Textbook
Environmental Economics and Management Theory Policy and Applications 6th Edition by Scott
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21 Chapters
884 Verified Questions
884 Flashcards
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Page 2
Chapter 1: The Role of Economics in Environmental Management
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42 Verified Questions
42 Flashcards
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Sample Questions
Q1) Managing the earth's resources to ensure their quality and abundance for future generations is known as
A) environmental quality
B) ecological preservation
C) sustainable development
D) biodiversity
Answer: C
Q2) According to proponents of an environmentally-adjusted measure of a nation's macroeconomic performance
A) GDP fails to properly capture the effects of environmental pollution
B) GDP appropriately accounts for natural resource depletion
C) the international community does not support environmental accounting
D) the guidelines outlined in the SEEA of 2003 are meaningless
Answer: A
Q3) Residuals are by-products, or pollution, left in the environment after a technological or natural process as occurred.
A)True
B)False
Answer: True
Page 3
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Chapter 2: Modeling the Market Process: a Review of the Basics
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Sample Questions
Q1) Equilibrium price is the price level at which Q<sub>D</sub> equals Q<sub>S</sub>.
A)True
B)False
Answer: True
Q2) Assume that the market demand for organic tomatoes is modeled as Q<sub>D</sub> = 104 - 2P and market supply is Q<sub>S</sub> = 20 + 4P. If the actual price is set at $20 per pound, there is a _________ of _______ units of the good.
A) surplus; 36
B) surplus; 26
C) shortage; 10
D) none of the above
Answer: A
Q3) In perfect competition, the firm faces a perfectly inelastic demand. A)True
B)False
Answer: False
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4
Chapter 3: Modeling Market Failure
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Sample Questions
Q1) Based on the model, the firm's M\(\pi\) function must be
A) M\(\pi\) = 20 - 0.8Q
B) P<sub>E</sub> = $22.50
C) M\(\pi\) = 0.3Q
D) M\(\pi\) = 20 - 0.1Q
Answer: B
Q2) Based on the model, the price at the efficient equilibrium is
A) P<sub>E</sub> = $18
B) P<sub>E</sub> = $22.50
C) P<sub>E</sub> = $20
D) P<sub>E</sub> = $40
Answer: B
Q3) If a good has the characteristic of nonrivalness, it means that A) the good is publicly provided
B) it is impossible to prevent others from sharing the benefits of consumption
C) the benefits linked to consumption are indivisible
D) none of the above
Answer: C
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Chapter 4: Conventional Solutions to Environmental
Problems: Command-And-Control Approach
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Sample Questions
Q1) The sum of all polluters' MACs equals the marginal social cost (MSC) of abatement. A)True
B)False
Q2) Consider the environmental problem created by two paint companies that release chromium wastes into a nearby stream. The state authorities set a standard for the waterway that requires a combined abatement level (A) for chromium of 15 units.
Suppose that the two firms, firm 1 and firm 2, face the following marginal abatement cost equations: MAC<sub>1</sub> = 3.2A<sub>1</sub> and MAC<sub>2</sub> = 0.8A<sub>2</sub>, where costs are measured in thousands of dollars.
a. If the state uses a uniform standard, show that such a ruling would not be cost-effective. Which firm should be abating more, and which firm should be abating less?
b. Now find the cost-effective solution.
Q3) By definition, the marginal abatement cost (MAC) curve shows the change in costs associated with higher levels of abatement, using the most widely available technology. A)True B)False
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Page 6
Chapter 5: Economic Solutions to Environmental Problems: the Market Approach
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Sample Questions
Q1) Major categories of market-based instruments include
A) pollution charges
B) subsidies
C) deposit/refund systems
D) pollution permit trading systems
E) all of the above
Q2) A Pigouvian subsidy
A) cannot achieve an efficient outcome
B) is a per-unit payment on a good that is set equal to the marginal external benefit at Q<sub>E</sub>
C) achieves efficiency as long as it is set equal to the MEC at the competitive output level
D) lowers the MPB vertically by the amount of the subsidy
Q3) In a deposit-refund system, the deposit makes the polluter internalize the externality by absorbing the cost of any damage it might generate in advance. A)True B)False
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Page 7
Chapter 6: Environmental Risk Analysis
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Sample Questions
Q1) In risk characterization, a reference dose (RfD) of 0.007 means that A) 0.7 percent of people are exposed to the environmental hazard
B) exposure to 0.007 milligrams of a pollutant per body weight per day over a lifetime should cause no harm
C) there is a 0.007 percent probability that the pollutant causes no harm
D) 7 out of 1 million people are affected by the pollutant
Q2) All dose-response functions are
A) linear relationships
B) nonlinear relationships
C) vertical relationship
D) horizontal relationships
E) none of the above
Q3) Risk analysis is an important element of environmental policy development. A)True B)False
Q4) Risk assessment refers to only the quantitative evaluation of risk. A)True
B)False
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Chapter 7: Assessing Benefits for Environmental Decision Making
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Sample Questions
Q1) Assuming that the marginal social benefit (MSB) of environmental quality is known, then
A) the MSB represents the demand for environmental quality
B) total social benefits (TSB) of abatement, A<sub>1</sub>, can be captured as an area under the MSB up to A<sub>1</sub>
C) incremental benefits are measured as an area under the MSB between the pre- and post-policy abatement levels
D) all of the above
E) none of the above
Q2) A disadvantage of the travel cost method is
A) it cannot determine monetary values
B) it estimates only user value and not existence value
C) it focuses on recreational use making it ineffective for commercial use
D) all of the above
E) (b) and (c) only
Q3) A disadvantage of the travel cost method is that it estimates only existence value and not user value.
A)True
B)False
Page 9
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Chapter 8: Assessing Costs for Environmental Decision Making
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Sample Questions
Q1) When abatement expenditures are estimated in accordance with the input provided directly from polluting sources, that estimation method is known as the direct approach.
A)True
B)False
Q2) Labor expenditures associated with carrying out an abatement process are considered to be part of
A) capital costs
B) fixed costs
C) operating costs
D) implicit costs
E) none of the above
Q3) According to the survey approach, abatement spending is estimated based on the lowest-cost technology available.
A)True
B)False
Q4) Incremental costs are the accumulated expenditures associated with an environmental policy initiative.
A)True
B)False
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Chapter 9: Benefit-Cost Analysis in Environmental Decision
Making
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Sample Questions
Q1) All of the following are true EXCEPT
A) President Reagan was the first U.S. president to call for the use of economic criteria when evaluating policy
B) President Reagan's Executive Order 12291 required the use of a Regulatory Impact Analysis (RIA) when major regulations were being considered
C) During his presidency, Clinton did not issue any executive order to continue Reagan's commitment to using economic criteria in policy evaluation
D) President Obama issued an executive order to support and expand upon President Clinton's executive order requiring benefits to justify the costs of a significant regulation
Q2) Matters of equity are explicitly integrated into the decision rules that govern benefit-cost analysis.
A)True
B)False
Q3) To achieve allocative efficiency, the present value of net benefits (PVNB) must be minimized.
A)True
B)False
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Page 11
Chapter 10: Defining Air Quality: the Standard-Setting Process
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Sample Questions
Q1) Recently proposed revisions to the NESHAP
A) have been enacted without debate
B) include one aimed at coal-fired and oil-fired power plants
C) will weaken national controls on toxics
D) none of the above
Q2) The first federal air pollution legislation was the Clean Air Act of 1963.
A)True
B)False
Q3) The secondary NAAQS
A) are air quality emissions standards intended to protect public welfare
B) are technology-based standards
C) are established to protect public health
D) control both criteria and hazardous pollutants
Q4) Which of the following statements is INCORRECT?
A) Before the 1950s, all air quality laws in the United States had been enacted at the state and local levels of government
B) The first state-level law to control motor vehicle emissions was passed in Massachusetts
C) The Clear Skies Act was put forth under the administration of George W. Bush
D) The Clean Air Act Amendments of 1990 include some market-based policies
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Chapter 11: Improving Air Quality: Controlling Mobile Sources
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Sample Questions
Q1) Reformulated gasoline
A) refers specifically to ethanol (10)
B) includes enhanced oxygen to enhance combustion
C) refers to formulations that release less hydrocarbons, toxics, and CO than conventional gasoline
D) includes large amounts of MTBE
Q2) According to the textbook application, hybrid vehicles
A) were introduced to the mass market by Honda and Toyota
B) use an electric motor for start-up and low speeds and a small conventional motor for normal speeds
C) generate reduced emissions and provide high fuel efficiency
D) all of the above
E) none of the above
Q3) Mobile sources
A) are major contributors to the formation of photochemical smog
B) release only small amounts of NO<sub>X</sub> and VOCs
C) play a minor role in the smog problem of Los Angeles
D) have not been linked scientifically to smog formation
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Chapter 12: Improving Air Quality: Controlling Stationary
Sources
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Sample
Questions
Q1) Stationary source emissions currently are controlled primarily by A) performance-based limits
B) technology-based standards
C) the bubble policy
D) the OTC NO<sub>X</sub> Budget Program
Q2) Overall, empirical studies fail to support the claim that command-and-control policy is more costly to implement than more flexible approaches.
A)True
B)False
Q3) Suppose the Clean Air Act calls for a rise in NO<sub>2</sub> abatement (A) from 50 to 60 percent and that the MSC (in millions) is MSC = 12 + 0.8A, where A is measured in percent. Then, the incremental cost of this policy change is
A) $8 million
B) $40 million
C) $560 million
D) $500 million
Q4) Explain why the current abatement levels for the two sources do not achieve cost effectiveness.
Page 14
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Chapter 13: Global Air Quality: Policies for Ozone Depletion and Climate Change
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Sample Questions
Q1) Currently, which of the following countries have not ratified the Kyoto Protocol?
A) United States
B) China
C) Russia
D) all of the above
E) (a) and (b) only
Q2) Scientists agree that the presence of chlorofluorocarbons (CFCs) in the atmosphere most likely explains the existence of the ozone hole.
A)True
B)False
Q3) What is the equilibrium price and quantity of CFC-11 before the excise tax?
A) P = $8.75; Q = 5
B) P = $7.5; Q = 8.75
C) P = $6.875; Q = 8.75
D) none of the above
Q4) The largest "hole" in the earth's ozone layer occurs over North America.
A)True
B)False
15
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Chapter 14: Defining Water Quality: the Standard-Setting Process
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Sample Questions
Q1) The Clean Water Act's no toxics in toxic amounts goal can be justified on economic grounds.
A)True
B)False
Q2) The Coastal Zone Act Reauthorization Amendments (CZARA) address the development of coastal nonpoint pollution control programs.
A)True
B)False
Q3) Because the Chesapeake Bay's quality had not improved sufficiently, a Presidential Executive Order established a committee to develop a strategy to restore the bay.
A)True
B)False
Q4) When states set receiving water quality standards
A) they must set the same standards for all water bodies within their boundaries
B) benefit-cost analysis must be used
C) the use designation need not be consistent with national goals
D) all of the above
E) none of the above
Page 16
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Chapter 15: Improving Water Quality: Controlling Point and Nonpoint
Sources
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Sample Questions
Q1) When an effluent fee is put in place,
A) all polluting sources will abate the same number of units, regardless of cost differences
B) cost savings can be realized
C) an efficient solution is assured
D) each polluting source reduces effluents to zero to avoid the fee
Q2) The technology-based effluent limitations are actually performance-based standards.
A)True
B)False
Q3) The federal grant program may have created an incentive for over-building of POTWs and a disincentive for cost-minimization.
A)True
B)False
Q4) Tradeable effluent permit markets can lead to cost savings as long as polluting sources face different marginal abatement costs to control the same pollutant.
A)True
B)False
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Chapter 16: Protecting Safe Drinking Water
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Sample Questions
Q1) The best available technology (BAT)
A) is the treatment technology that makes attaining the MCL feasible
B) has no relationship with the MCL or the MCLG
C) is the required technology that must be used by public water suppliers
D) is part of the secondary drinking water standards
Q2) Suppose that the U.S. market for bottled water is modeled as follows:
S = MSC = 1 + 0.3Q D = MSB = 5 - 0.1Q, where Q is billions of gallons per year and MSC and MSB are in dollars per gallon.
a. What is the equilibrium quantity (Q<sub>E</sub>) and price (P<sub>E</sub>) in the U.S. bottled water market?
b. At equilibrium price and quantity, how much total revenue will bottled water suppliers receive in a given year?
c. Assume that concerns about tap water potability increase demand for bottled water, and that the new demand (D<sup>' </sup>) is represented by the following: D<sup>'</sup> = MSB<sup>'</sup> = 7 - 0.1Q
What is the new equilibrium quantity (Q<sub>E</sub>' ) and price (P<sub>E</sub><sub> </sub>') in the U.S. bottled water market?
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Chapter 17: Managing Hazardous Solid Waste and Waste Sites
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Sample Questions
Q1) The Superfund Amendments and Reauthorization Act (SARA) maintained the "Superfund" at its original level of $1.6 billion.
A)True
B)False
Q2) Superfund relies in part on strict liability, which means that
a. an individual can be held liable even if negligence is not proven b. only current waste site owners are liable for damages
c. polluters can be held liable for damages but not waste site owners
d. a single party can be held liable for all damages even if their contribution to damages is minimal
Q3) Lack of good information was among the issues facing the United States as it began to address the hazardous waste site problem in the nation.
A)True
B)False
Q4) Unwanted materials that pose a substantial threat to human health or the environment are referred to as municipal solid wastes.
A)True
B)False
19
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Chapter 18: Managing Municipal Solid Waste
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Sample Questions
Q1) In the United States, the recovery rate for plastic wastes
A) has been declining as the use of plastics has been decreasing over time B) has been rising because of low-cost methods for sorting by resin content C) is waning because of the absence of lucrative markets for all recycled plastics D) is generally low because of costly steps in the plastic recycling process
Q2) The dollar value of a waste-end charge that would achieve efficiency in this market is
A) $7.60
B) $11
C) $9.5
D) none of the above
Q3) The dollar value of a retail (or front-end) disposal charge needed to restore efficiency to this market would be
A) $4
B) $2
C) $6
D) $20
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Chapter 19: Controlling Pesticides and Toxic Chemicals
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Sample Questions
Q1) In the presence of a negative consumption externality, the MSB lies below the MPB.
A)True
B)False
Q2) The Responsible Care Program
A) is strictly a United States initiative
B) originated in the United States
C) was launched in 2010
D) was originally launched in Canada by a chemical producers association
Q3) FIFRA rulings require that no pesticide be sold or distributed unless it has been registered with the EPA.
A)True
B)False
Q4) Proper registration of new pesticides
A) is subject to EPA approval
B) generates a formal listing of a pesticide based on benefit-cost analysis
C) is independent of the pesticide labeling
D) cannot be denied if adverse environmental effects are linked to its widespread use
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Chapter 20: Sustainable Development: International
Environmental Agreements and International Trade
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Sample Questions
Q1) The London Convention 1972 and the 1996 Protocol are aimed at the problem of A) acid rain
B) ozone depletion
C) climate change
D) dumping wastes at sea
Q2) The United States ratified the Kyoto Protocol in 2001 during the Bush administration.
A)True
B)False
Q3) The North American Free Trade Agreement (NAFTA)
A) involves the United States, Canada, and Mexico
B) did not increase the volume of trade among the countries of North America
C) was negotiated after President Obama took office
D) failed to acknowledge environmental protection in its trade propositions
Q4) The international trade agreement that was executed in the 1940s was A) the NAFTA
B) the U.S.-Mexico Border 2012 Agreement
C) the London Convention
D) the 1996 Protocol
E) the GATT
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Chapter 21: Sustainable Approaches: Industrial Ecology and
Pollution Prevention
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Sample Questions
Q1) A major component of the ISO 14000 standards addresses life cycle assessments. A)True
B)False
Q2) A closed flow of materials is one in which residuals are returned to the production process.
A)True
B)False
Q3) According to the textbook application, the International Organization for Standardization (ISO) has developed standards for environmental management. Identified as
A) ISO 1500
B) ISO 15000
C) ISO 1400
D) ISO 14000
Q4) The Pollution Prevention Act of 1990
A) replaced the National Environmental Policy Act of 1969 (NEPA)
B) was repealed in 2005
C) ranks source reduction as the primary goal followed by waste treatment
D) ranks recycling above source reduction
Page 23
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