Mia Ha - Problem Set 7.docx - Mia Ha ECON 436 Problem Set#7...

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Mia Ha ECON 436 Problem Set #7 I. The Clean Air Act required the EPA to set National Ambient Air Quality Standards (NAAQS) for the criteria pollutants, A. What was the goal that the NAAQS were required to achieve? The goal that the NAAQS were required to achieve was to provide people with an adequate margin of safety and eliminate any known/anticipated adverse health effects; the NAAQS wanted to protect people and create a save environment for the public. B. Explain why setting the NAAQS on this basis was not a sound basis for public policy. Setting the NAAQS on this basic was not as sound basis for public policy because of the nature of the setting under the assumption that reducing pollution below the level that does no one harm while ignoring the cost are possible things to do. However, we need to know which threshold is used to determine the low level of pollution and figuring that out would cost a lot of money. So, ignoring the cost is not possible in this case. However, without the threshold, achieving the setting is impossible. Therefore, we could see how this setting was not a sound basis for public policy. II. Explain why the method used to reduce emissions of pollutants from automobiles does not minimize abatement costs.
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  • Fall '08
  • Staff
  • National Ambient Air Quality Standards, NAAQS

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