Lecture 11

Question 1

Resource stock will collapse after ____ point

Answer 1

Tipping

Question 2

What are 2 solutions to the open access problem?

Answer 2

1. Exclusive economic zones
2. Total Allowable Catch
3. Individual Trasferable Quotas

Question 3

Hotelling Rule

Answer 3

owners of nonrenewable resources will only produce basic commodities if doing so can yield more than could be earned from available financial instruments

Question 4

Sustainable Standard of living (Hatwick’s rule)

Answer 4

Investment in productive assets to make up for resource depletion

Question 5

NIMBY

Answer 5

Not in my backyard

Question 6

What is a backstop technology?

Answer 6

Technology replacing current resource (solar, wind…)

Question 7

Carrying capacity?

Answer 7

number of living organisms or crops that a region can support without environmental degradation

Question 8

what happens during harvest above maximum sustained yield?

Answer 8

overfishing

Question 9

what is open access

Answer 9

no restriction to hunting/fishing

Question 10

what is the open access problem? (tragedy of commons)

Answer 10

individual consumes resource at expense of society

Question 11

BANANA

Answer 11

Build absolutely nothing anywhere near anything