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18 Cards in this Set
- Front
- Back
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What are the Five Primary Policy Criteria? |
1. Efficiency and cost-effectiveness 2. Fairness 3. Incentive effects 4. Enforceability 5. Morality |
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When is a policy cost-effective? |
Max envi improvement with given resources OR min cost given amount of envi impact |
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What is an efficient policy? |
A policy that moves us to/near the point where marginal abatement costs and marginal damages are equal |
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Does a cost-effective policy need to be efficient? |
NO. But an efficient policy must be cost-effective |
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Why is cost effectiveness important? |
More cost-effective policies might reduce spending by 50% for same amount of pollution control OR more pollution control for same amount of spending |
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Which is more efficient? Command and control policies (ex. standards) or market-based approaches (ex. TEPs and environmental taxes)? |
Market-based approaches are more efficient that command and control |
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What is a policy's fairness? |
It considers who pays and who benefits from a policy |
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Regressive vs progressive policy?
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REGRESSIVE --> impacts low-income people in a negative way (tax/restriction on owning older cars) |
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How do incentives for innovation secure emission reductions? |
Private firms devotes resources to find lower cost ways to reduce the pollution. That lowers the cost of abatement which shifts the MAC down, making it cheaper to secure emission reductions |
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Why is enforceability important? |
Enforcement costs are very costly, yet a lack of enforcement will result in little change. |
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How does moral considerations affect the efficiency of a policy? |
The perceived morality of a policy impacts the way the government behaves. |
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Should political feasibility be a criterion in designing environmental policies? |
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Is it more important for a policy to be efficient or for it to meeting another criteria, such as fairness? |
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Theoretical liability laws vs in practice. Why? |
THEORETICALLY: It leads to socially efficient level of pollution |
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What are some solutions to the tragedy of the commons? |
Privatization - well defined property rights Government ownership - tax Users create their own system |
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Why does bargaining between polluter and pollutee allow each to benefit? |
Receiving payment for damages OR reducing marginal abatement costs |
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What does the Coase Theorem state? |
A socially efficient outcome can be reached regardless of the assignment of property rights CONDITIONS 2. No transaction costs in negotiations |
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What are Elinor Ostrom's 8 Principles for Managing a Commons? |
1. Define clear boundaries 2. Match rules governing use of common goods to local needs and conditions 3. Ensure that those affected by the rules can participate in modifying the rules 4. Make sure the rule-making rights of community members are respected by outside authorities 5. Develop a system, carried out by community members, for monitoring members' behavior 6. The graduated sanctions for rule violators 7. Provide accessible, low-cost means for dispute resolution 8. Build responsibility for governing the common resource in nested tiers from lowest level up to the entire interconnected system |
