E162Pollution

E162Pollution - Using the Market to Control Pollution 40)...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
40) Explain the argument which says that taxes are a better tool for controlling carbon dioxide emissions in the United States than a cap-and-trade system. Environmental taxes have worked well to raise revenue, but without a cap they inevitably become a license to pollute in unlimited amounts. No air pollution problem has ever been solved except by imposing a legal limit on emissions. The rate of reduction in emissions in 1990, the first year with the tax, was at least five times greater than in the preceding period with the cap alone. While a more aggressive cap might have worked by itself, the fact is that, contrary to Krupp, a pollution tax did the job quite well. But without fuel prices that clearly convey the real price of pollution to the purchaser, the transition from fossil fuels won’t happen until most of the carbon still underground has moved into the atmosphere. 41) Explain the argument which says that a cap-and-trade system is a better tool for controlling carbon dioxide emissions in the United States than taxes. cap= legal limit on pollution a cap will push economy towards clean energy, a tax is a license for unlimited pollution 42) What market-based instrument did the 1990 Clean Air Act amendments implement? What substance was targeted? Allowing companies to trade ton allowances on certain substances. SO2 was targeted. 43) What are two reasons why the United States has historically tended to rely on command-and- control regulation for environmental protection rather than on market-based tools? What is one reason why a market-based tool was acceptable in 1990? 1. Many legislators and staff trained in law which causes them to favor legalistic regulatory approach 2. standards help hide costs of pullution control 3. command-and-control instruments have more certain affects market- based tools were acceptable in 1990 due to increased pollution control costs 44) What are two lessons that Stavins (1998) says the United States should learn from its experience implementing the market-based approach established by the 1990 Clean Air Act amendments? 1. no single policy instrument will appropriate all environmental problems 2. which instruments are best depend on characteristics of specific problem 45) Describe the attitude a preservationist would likely have toward biodiversity. Describe the attitude a utilitarian would likely have toward biodiversity. What are the key differences? Preservationists are those who believe that biological diversity has intrinsic value and should be conserved for its own sake to the maximum extent possible, regardless of whether any given component can be shown to produce tangible economic benefits. Utilitarians attach low value to the efforts of biodiversity and believe that they are only
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

E162Pollution - Using the Market to Control Pollution 40)...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online