Environmental Economics and Policy in the US
Environmental Economics and Policy
“If domestic gas prices rise to $5 per gallon, conservation will increase, alternative fuels will be developed, and energy efficiency and our quality of life will improve.” This view is consistent with environmental economics.
International Environmental Policies
International environmental policies arise from international conventions or treaties.
Genuine Progress Indicator (GPI)
Which of the following includes volunteer work and damage from pollution in its measure of a country’s economic progress and prosperity?
Answer: GPI (Genuine Progress Indicator)
Tragedy of the Commons
Which of the following best illustrates the tragedy of the commons?
Answer: A nonprofit organization does a winter clothing drive, and the first people to show up to get winter clothing grab far more than they need, leaving nothing for the families that show up a few minutes later.
National Environmental Policy Act (NEPA)
The National Environmental Policy Act (NEPA) required environmental impact statements for any projects funded by the U.S. government.
External Costs
Environmental damage from industry or land development has traditionally been labeled as external costs by economists.
World Trade Organization (WTO)
The WTO (World Trade Organization) promotes free trade by reducing obstacles to international commerce and enforcing fairness among nations in trading practices.
Definition of Economics
Which of the following is the most accurate definition of economics?
Answer: The study of how humans use potentially scarce resources to meet demand.
Triple Bottom Line of Sustainable Development
Leaders striving for sustainable development aim to satisfy a triple bottom line, which involves what three goals?
Answer: Economic advancement, environmental protection, and social equity.
20th-Century US Environmental Laws
The social changes in the United States in the 20th century gave rise to environmental laws concerned primarily with reducing pollution caused by industry.
Neoclassical Economics Perspective
“If domestic gas prices rise to $5 per gallon, growth will slow significantly, and our quality of life will decline.” This view is consistent with neoclassical economics.
Internal Costs Principle
The principle that “internal costs,” which are the costs and benefits borne by the buyer and seller alone, represent the true and full economics of all transactions is a principle of neoclassical economics.
Ecosystem Services
Which of the following is an ecosystem service?
Answer: Pollination of crop plants.
Aims of Environmental Policy
Environmental policy aims to promote human welfare and protect natural systems by regulating resource use and reducing pollution.