HW#3 answers
1.
Substitute the rent gradient into the budget constraint and this yields:
Income = pizza + 400 + 6*(Clean Air)
So note the opportunity cost, an extra day of Clean Air costs you six slices of pizza.
Maximize 100*square root of pizza + 200*sq
Answers to HW #2
1. We face a major missing data issue here that limits our ability to estimate the causal
effect of the Clean Air Act on reducing a citys ambient air pollution. While we observe
LA, Chicago and NYCs air pollution over time, we do not obse
HW #2 for M134 Due 10/14/2013
Here are some ambient pollution data for cities in the United States over time. The units are
days where the pollution level exceeded the World Health Organizations recommended level.
So Clean Air Days = 0 is the best the air
ECON/ENV 134 Environmental Economics
Fall 2015
Mel Bulu Taciroglu
Homework 3
Due Oct 16, 11pm
1. (60 points) A firm, operating in a perfectly competitive environment, produces jeans. You
have the following information about the production structure of the
Environmental Economics: M134
Lecture #3 (based on the books chapter
#3)
Matthew E. Kahn
UCLA and NBER and IZA
1
The Economics of Government
Intervention
Public property and public goods create an
intellectual justification for government to
intervene in
Environmental Economics: M134
Lecture #2 (based on the books chapter
#2)
Matthew E. Kahn
UCLA and NBER and IZA
1
Why is Economics Interesting?
An ambitious field that seeks to explain and
predict all human behavior with a simple
model of incentives and ra
ECON/ENV 134 Environmental Economics
Fall 2015
Mel Bulu Taciroglu
Homework 2
Due: Oct 9, 11pm
1. Recently, Gina McCarthy, head of the federal Environmental Protection Agency (EPA),
announced that by 2030 America's power stations must reduce their emission
ECON/ENV 134 Environmental Economics
Fall 2015
Mel Bulu Taciroglu
Homework 4
Due Oct 23, 11pm
1. 1. (40 points) A company called Zesla is producing electric vehicles. In producing
the lithium-ion batteries, toxic material is released into the environment.
M134 Environmental Economics
Mel Bulu Taciroglu
Homework 5
Due: Nov 6, 11pm
1. The United States government hires an economist to help study the nations
demand for protecting bald eagles in the United States. The government posits
that women are willing t
Homework #1
Due in class on 10/7/13
Instructions: Briefly answer all questions. You may work in groups of 4 or fewer people.
Please write everyones names at the top of each set of answers. Read Chapter Two of the
textbook.
A student named Bertha at the UC
LECTURE 11
COMPARING BENEFITS AND COSTS ACROSS TIME
Many decisions made now have consequences
that persist into future:
-
Exhaustible energy resources
Renewable biological resources
Persistent pollutants
We have to think about not only the magnitude of
th
The Role of
Government and
Public Goods
Internalizing the Pollution
Externality
Mel Bulu-Taciroglu
Partially adapted from Matthew Kahns Fundamentals of Environmental Economics
If property rights are allocated such that:
Firms have the right to pollute
Sim
Dirty Factory
Location and
Production
Choices
Internalizing the Pollution
Externality
Mel Bulu-Taciroglu
Partially adapted from Matthew Kahns Fundamentals of Environmental Economics
Factory Location and
Externalities
Externalities arise partly because the
UNCERTAINTY:
Assumes risk neutrality!
CHOOSING THE DISCOUNT RATE:
Discrepancy between social and private discount rate:
- Why?
- What does it imply?
Cost of capital (private and social)
Opportunity cost of capital (private and public)
Discount rate is
Environmental Economics: M134
Measuring the Demand for
Environmental Goods
Lecture #6
Matthew E. Kahn
UCLA and NBER and IZA
1
Introduction
Why must we measure demand for nonmarket environmental goods such as clean
air and clean water and protecting
biodiv
M 134 Environmental Economics
HW 6 SOLUTIONS
Fall 2015
Mel B. Taciroglu
Due: Nov 16, Monday, 11pm
1. (40 points) LADWP (Los Angeles Department of Water and Power) has the opportunity to invest in one
ECON/ENV 134 Environmental Economics
Mel Bulu
Homework 7
Due: November 23, Monday, 11pm
1. A student named Bertha at the UCLA Institute of the Environment is interested in
studying whether exposure to pollution causes sickness. She collects some data for
ECON/ENV 134 Environmental Economics
Mel Bulu Taciroglu
Homework 1
Due: October 4th, Sunday, 11pm, online.
1. After reading the Economist article on renewable energy and storage, answer the
following questions with a few sentences:
http:/www.economist.com
REVISED HW#3 Due 10/21/2013
You must choose where to live within Los Angeles. You gain pleasure from consuming pizza
and breathing clean air. The physical structure of all homes in Los Angeles are identical but
homes differ with respect to their neighborh
Homework #4
Due in Class on Monday 11/4/13
Select a company that you believe produces a green product. Answer the following questions using
Google research,
1. What environmental externality is mitigated by consuming the product you chose versus
consuming
Environmental Economics: M134
Causes and Consequences of
Environmentalism
Lecture #9
Chapter 9
Matthew E. Kahn
UCLA and NBER and IZA
1
Introduction
What is an environmentalist?
How does one become an
environmentalist?
What are the consequences in private
Environmental Economics: M134
Lecture #1 (based on the books chapter
#1)
Matthew E. Kahn
UCLA and NBER and IZA
1
Introduction
Economics is the rational social science.
What do these words mean?
Who Are We?
Spock or Homer Simpson
Neo-classical economics ve
Environmental Economics: M134
Lecture #4 (finish Chapter 3 and Starting
chapter 4)
Matthew E. Kahn
UCLA and NBER and IZA
1
More on Government:
Information Regulation
Why does government have a comparative
advantage in supplying information?
The Case of Re
Environmental Economics: M134
Causes and Consequences of
Environmentalism
Lecture #9
Chapter 9
Matthew E. Kahn
UCLA and NBER and IZA
1
Introduction
What is an environmentalist?
How does one become an
environmentalist?
What are the consequences in private
Environmental Economics (M134)
Fall 2013
Professor:
Email:
Phone:
Office Hours:
Matthew E. Kahn
[email protected]
(310) 794-4904
Institute of the Environment La Kretz Hall Suite 300c
Reader:
Email:
Section:
Office Hours:
Charles Card
[email protected]
1
Environmental Economics: M134
Lecture #5 (chapters 4 and 5)
Matthew E. Kahn
UCLA and NBER and IZA
1
Introduction
In our first economy, we solved for the
externality caused by the steel factorys
production
But, why was the steel factory located
there?
Wher
Environmental Economics: M134
Transportation Externalities
Lecture #7
Chapter 7
Matthew E. Kahn
UCLA and NBER and IZA
1
Introduction
Factories are a source of pollution
externalities
Cars are also a source of pollution
Why do people drive?
When do they im
Lecture #8
Notes on Chapter Eight
Negative Externalities
Examples of externalities:
Industry
Household transportation
Goods transportation and diesel trucks -who bears the incidence of cleaning up?
Household externalities
Bono, the lead singer of U2 and a
