CED 201, Spring 2010 Homework, 4 answer key #1. Suppose you as an environmental economist and a nature lover are contemplating to propose for a particular land to be set aside for preservation of wilderness area in your County. Preservation costs real mon
CED 201 Review for Exam 2
- Externality/market failure
- Social welfare in the presence of externality - The inefficiency of free market (or competitive market) when externality is present - Non-market valuation o Revealed preference Hedonic pricing Trave
Review for the third Exam CED 201, Spring 2010 Please review your class notes and your book. See me at my office for clarification. In addition, please remember to review quiz #3 and #4; HW # 4 and #5. - Benefit Cost Analysis o Discounting /Discount rate
The first question is related to the lecture on ethanol and ethanol policy.
Corn is cheap, Climate Change: reduce use of fossil fuels, Oil price is rising
Policy: Import tariffs and tax credits for producers
It never grew. Why?
New oil d
1. Understand the economic decision made by an owner of a forest stand, i.e. the key variables that
determine whether he or she will clear-cut or rotate the forest optimally.
Forest solutions determine when rather than how much.
The exam will consist of:
25 multiple-choice questions, which will be two (2) points each.
10 short answer questions, which will be (5) points each.
The first 15 multiple-choice q
1. The first question is related to the Coase Theorem and why the theory
may not be implemented in certain cases i.e., when the benefits dont
outweigh the costs.
Pigovian Taxes put the property rights of the environment in societys
hands; so the business