20.01.2020 Monday 13:00-14:00
Tutorial 1
Questions
Q1
What are the three ways in which society uses the environment?
Source of natural resources, waste sink for pollution, amenity
Q2
True or false:
A key objective of environmental economics is to ensure that the design and implementation of environmental policy reduces degradation to efficient levels.
True?
Q3
What is meant by ‘market failure’?
Defining a market failure is when a transaction between two parties have an effect on a third party that is not involved.
Q4
Using the key readings, draw a diagram that captures the three functions that the environment provides when interacting with the economy.
Eeh blah dont want to
Q5
List the four property rules
- Universality/ownership // all property is privately owned and entitlements are completely specified.
- Excludability/exclusivity // all benefits and costs only go to the owner of the resource
- Transferability // property rights are transferable from one owner to the other
- Enforceability // property rights are safe from being seized – violation of property rights result in penalties.
Q6
True or false:
In general an environmental good such as a natural forest will be overused if the resource is not privately owned.
True.
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