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natural resource economics

Questions and Answers of Natural Resource Economics

Climate change policies can focus on changing behaviors or changing technology. Which approach do you think could be more effective? What policies can be used to encourage changes in each?
Which economic climate change policy do you prefer: A carbon tax or a cap-and-trade system? Why? What are the main barriers to effective policy implementation?
What goals would be appropriate in responding to climate change? Since it is impossible to stop climate change entirely, how should we balance our efforts between adaptation and prevention/mitigation?
Do you think that the use of cost-benefit analysis to address the problem of climate change is useful? How can we adequately value things like the melting of Arctic ice caps and inundation of island
What is the main evidence of global climate change? How serious is the problem, and what are its primary causes? What issues does it raise concerning global equity and responsibility for dealing with
What policies are most relevant to promoting a transition to renewables? Is this likely to occur through the market, or are aggressive government polices required? What are the justifications for
How will the world’s energy needs change over the coming decades? What are the different possibilities for energy development paths, and what are the advantages and drawbacks of different possible
Since energy production represents only about 8–10 percent of economic output, why should any special importance be placed on this sector? Is there any significant difference between an economic
Suppose you have been hired by the developing country of Equatoria to calculate its Green GDP. Assume for simplicity that only three adjustments need to be made to account for natural capital
What are some of the policy implications of using a revised measure that takes into account environmental and resource depreciation? How might the use of revised measures affect such policy areas as
Of the various alternative indicators presented in this chapter, which one do you think is the most useful for policy guidance? Summarize the advantages of your preferred indicator.
What kinds of problems arise from the focus on standard GDP measures in discussing economic policy? How do these problems differ for highly industrialized countries like the United States and
Distinguish the concepts of strong and weak sustainability, and give some practical examples, other than those cited in the text, for their application. Where is each concept most appropriate? Which
Is the concept of optimal scale for an economy useful? If so, how would you go about determining it? Do you think that economies such as those in the United States, Europe, and Japan have reached
In what respects is “natural capital” similar to human-made capital, and in what respects does it differ? We often speak of a “return to capital,” meaning the stream of income generated by a
Two power plants are currently emitting 8,000 tons of pollution each (for a total of 16,000 tons). Pollution reduction costs for Plant 1 are given by MCR1 = 0.02Q and for Plant 2 by MCR2 = 0.03Q,
What stories have you seen in the news recently regarding pollution policies? Considering the information that you have learned in this chapter, what are your policy recommendations in these cases?
Why is a freeze on emissions not an adequate policy response to a cumulative pollutant such as chlorofluorocarbons? What kinds of policies are more appropriate, and why is it often especially
Suppose that your state has a problem with pollution of rivers and lakes, from both residential and industrial sources. You are asked to advise on appropriate pollution control policies. Which kinds
How practical is the idea of an optimal pollution control level? How is it possible to establish such a level in practice? Can this be done solely based on economic analysis, or do other factors have
The World Bank is considering an application from the country of Equatoria for a large dam project. Some costs and benefits of the project (dollar values) are as follows:• Construction costs: $500
Suppose that the government of a developing country is considering the establishment of a national park in a scenic forested area. Local opposition arises from those who wish to use the forest land
As mentioned in the text, under U.S. law federal agencies must use cost-benefit analysis to evaluate major policy proposals. Do you agree with this requirement, in particular for environmental
Suppose that you are asked to conduct a cost-benefit study of a proposed coal-fired power plant. The plant will be built on the outskirts of a residential area and will emit a certain volume of
Do you think contingent valuation should be widely used as a tool for developing environmental policy recommendations? What do you think is the main strength of CV?What do you think is its main
What are the strengths and limitations of using estimates of total economic value to develop environment policy recommendations? How does your answer relate to your worldview (anthropocentric or
Suppose we are analyzing the intertemporal allocation of oil. Assume a generation is 35 years, and we are concerned with only two generations. The demand and supply functions for oil in the present
How could the principle of allocation of resource over time be applied to environmental resources such as the atmosphere and the oceans? Would the same kind of conclusions about optimal depletion
It has been argued that any government policy aimed at nonrenewable resource conservation is an unwarranted interference with the free market. According to this point of view, if a resource is likely
Four towns share a common water source. By buying open land along the watershed(area from which the water flows) they can preserve its purity from sewage, road runoff, etc. The land demand schedule
Farmers in an arid region of Mexico draw their irrigation water from an underground aquifer. The aquifer has a natural maximum recharge rate of 340,000 gallons per day(i.e., 340,000 gallons per day
Do you think it is possible to draw a clear distinction between private and public goods?Which of the following might be considered public goods: farmland, forest land, beachfront property, highways,
Discuss the effects of technological improvement in an industry that uses a commonproperty resource. For example, consider a technological improvement in fishing equipment that makes it possible to
Suppose that the fishery example discussed in the chapter was not a common property resource but a fishery in a lake owned by an individual or a single firm. The owner could choose to allow fishing
Would a good policy for fishery management aim to obtain the maximum sustainable yield? Why or why not? When we speak of an optimal equilibrium from an economic point of view, will this equilibrium
How do you think we need to approach environmental issues differently in developed and developing countries? What do you see as the main environmental challenges in each?
Over the past several decades, people have worried about the world running out of oil or natural resources. Sufficient oil remains for current needs, however, and no important resources have run
Can we safely say that history has refuted the Malthusian hypothesis? What main factors have worked against Malthus’s perspective? Do you identify similarities between the original Malthusian
What do you think are the strengths and weaknesses of the environmental economics approach? What are the strengths and weaknesses of the ecological economics approach?
Is it possible to put a monetary price on environmental resources? How? Are there cases in which this is impossible? Identify specific instances of valuing the environment with which you are familiar
Do economic growth and sound environmental policy necessarily conflict? Identify some areas where a choice must be made between economic growth and environmental preservation and others where the two
What are the central environment and development issues for the twenty-first century?
What is the role of international development institutions in sustainable development?
How can sustainability be pursued at global, regional, and local levels?
Can the goals of economic development and environmental sustainability be reconciled?
What policies can promote sustainable trade?
Should regional and global trade agreements include environmental protection?
What effects does expanded trade have on the environment?
Is water a private good or a common-property resource?
Can water markets promote more efficient water use?
Can water shortages be addressed by expanding supplies?
What is the extent of global water scarcity?
How can policies for sustainable forestry be implemented?
What are the causes of forest loss, and what regions of the world are losing or gaining forest cover?
What are the economic and ecological principles of forest management?
What policies can be effective in conserving and rebuilding fisheries?
Why are so many of the world’s fisheries suffering from overexploitation?
What are the ecological and economic principles governing fisheries?
How do economic incentives affect recycling of nonrenewable resources?
What are the environmental costs of mining for mineral resources?
How will prices for metals, minerals, and other nonrenewable resources change over time?
Are we running out of nonrenewable resources?
How can we develop a sustainable agricultural system for the future?
What are the impacts of new agricultural technologies?
Are agricultural production systems degrading the environment?
Can we produce enough food for a growing global population?
What population policies are effective?
How does population growth affect the global environment and climate change?
What relationship exists between population and economic development?
What are the prospects for future population growth?
How fast is world population growing?
What policies can promote a transition to a green economy?
Is protecting the environment bad for the economy?
What economic theories provide insight into the relationship between the economy and the environment?
Is a “green economy” possible?
What climate policies have been proposed and implemented at local, national, and global levels?
What does economic theory suggest about appropriate policy response?
What are the possible policy responses to global climate change?
How can we model the long-term impacts of climate change?
Can economic theory help evaluate the impact of climate change?
What consequences can we expect in the future?
What are the impacts of global warming/global climate change?
Can we shift from fossil fuel-based energy to renewable energy systems?
Is there a danger of energy shortages?
What are current and future demands for energy?
What is the special role of energy in economic systems?
What is the potential for alternative “green”measures of national welfare?
How can traditional national accounting measures be adjusted to better reflect the importance of natural capital and environmental quality?
How do traditional national income accounting measures fail to account for the environment?
How can we sustain economic well-being and ecosystem health in the long term?
What limits the scale of economic systems?
How can we account for and conserve resources and environmental systems?
Are natural resources a form of capital?
How can we deal with long-lived and cumulative pollutants?
Should industries be allowed to purchase permits to pollute?
How can we balance the costs and benefits of pollution regulation?
What are the best policies for controlling pollution?
How can we value the interests of future generations?
How can we value human life and health?
What are the strengths and limitations of cost-benefit analysis?

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