Topic 17&18: All Markets For Pollution Flashcards Preview

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Flashcards in Topic 17&18: All Markets For Pollution Deck (5)
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1
Q

Benefit of markets

A

Markets ensure efficient allocation of resources to point where MB=MC

2
Q

Command and Control- Pollution Regulation

A

Methods used for air and water point source pollution

Include fixed emission standards for firms

Characterised as being inflexible and not including a ‘price like’ element that provides firms collectively with incentive to find a least cost solution to pollution problem

Regulator cannot observe firm’s abatement cost schedule -> command and control cannot account heterogeneity among firms especially in terms of abatement costs

3
Q

Swedish Nitrogen Charge

A

Addressed acid rain problem

Gives firm incentive to reduce emissions per unit of energy

Charge large emitters in power sector for emitting NOX

Tax is paid back to firms on basis of energy

4
Q

US Sulfur Allowance Program

A

Cap and trade scheme

Penalty for over emissions

For acid rain

5
Q

Hunter River Salinity Trading Scheme

A

Saline water discharged from mining and other sources reduced water quality for irrigators

Discharge salty water when there is lots of salt fresh water in river

Credits and license holding