how would you evaluate the request of your minilie 5. Oil spills from oceangoing tankers are rare but bring huge damages to coastlines when they occur within 200 miles of shore. Unfortunately, most tanker spills do occur on or near coasts. Rank the following alternatives according to how efficient they are is responding to the threat of oil spills. Explain your ranking. a. Each nation with an endangered coastline should impose a tax on all imported oil tax that raises enough revenue to compensate for any oil-spill damages. b. Each coastal nation should impose a tax on all domestically purchased oil, a tax raises enough revenue to compensate for any oil-spill damages. Oil-carrying companies should be legally liable for all damages, in the courts of countries whose national waters are polluted by the spills. Each coastal nation should intercept all oil tankers in national waters and them a fee that will cover the estimated costs of future oil spills.e. We might as well save ourselves the expense of trying to prevent spills. They are just having coasts. accidents beyond the control of the shipping companies; they are part of the cost of 6. Consider the example of domestic pollution shown in Figure 13.4. Suppose that the marginal external cost of the pollution is $0.05 per ream produced (instead of $0.30). a. With this different MEC, does free trade make the country better off or worse off? b. To gain the most from trade, should the country export or import paper? How much? 7. Which of the following would do most to cut the global buildup of carbon dioxide over the next 30 years? a. Elimination of all subsidies to energy use. b. A tax that rises to $86 per ton of emitted carbon dioxide, as described in this chapter. fossil fuels. c. The trend toward rising fuel scarcity, caused by exhausting the world's reserves of 8. Assume that the production of cement also produces a substantial amount of air pol- lution and that a technology is available that can lower the pollution but with some- what higher production costs for the cement. Because of the availability of raw materials in Lindertania, it produces large amounts of cement, and its exports supply most demand in Pugelovia. But the air pollution from Lindertania's production blows into Pugelovia, causing a noticeable deterioration in Pugelovia's air quality. Although Lindertania suffers some harm itself from this air pollution, it does not now have any policy to reduce the pollution. The Pugelovian government wants to address this air pollution problem. a. If the two countries' governments cooperate, what is the best solution to address the problem? Explain. b. If Pugelovia must come up with a solution on its own, what should the Pugelovian government do? Explain. 9. Use your no. 2 pencil to write down your views on this trade-and-environment debate: According to the Rainforest Action Network (RAN), a rain-forest wood called jelu- tong is being logged at a dangerous rate in Indonesia. The reason is that pencil makers recently shifted about 15 percent of their production from the more expensive cedar wood to jelutong, saving $1 on every dozen pencils. The Incense Cedar Institute, which represents three major companies growing cedar in the United States, echoes the con- cerns of RAN about the threat to tropical rain forests. Speaking for the pencil makers, executives of Dixon Ticonderoga explain that the jelutong wood in Indonesia is not gath- ered from rain forests, but is planted and harvested on plantations. What should be done about the use of jelutong wood in making pencils? Should the government of Indonesia block the export of jelutong wood? Should the government of the United States tax or prohibit jelutong imports? Defend your view. If you feel you need more information than is given here, what extra information would be decisive?Two Trade Policy a. Using your graph. show the effect on Austria of this change in the waste dumping Calculate the euro value of the effect of the change in waste dumping on Austria's well-being. b. Overall, including both the standard effect of the tariff (not shown in the graph) and the effect of the change in waste dumping, is Austria better off or worse off (than it was before it imposed the tariff)? Rhinoceroses are an endangered species. Worldwide, the number of rhinos has decreased 90 percent in the past 50 years, to about 29,000. Since 1977, CITES has had a ban on international trade in rhino parts. The most valuable part of a rhino is its horn which can be sold for prices that have risen as high as $100,000 per kilogram. Given the very high price, illegal poaching, in which rhinos are killed for their horns, has increased rapidly. Interestingly, if done properly, the horn of a rhino can be harvested without kill. ing the rhino, and the horn will grow back. What challenges does CITES face in attempting to prevent international trade from contributing to the extinction of the rhino? 12. Why did the Montreal Protocol succeed in limiting global emissions of chlorofluorocar bons (CFCs), whereas the world has found it difficult to limit the emissions of CO ? What differences between the two cases explain the difference in outcome