TPP Flashcards
1
Q
what are the aims of TPP(2)
A
- reduce pollution (CO2 emissions)
- encourage green production methods
2
Q
what type of approach is a TPP
A
market based approach
3
Q
what is an alternative approach to TPP
A
blanket regulation approach - redistributes CO2 emissions across all firms in the market
4
Q
what choices do the firms have when deciding to keep/increase CO2 emissions(2)
A
- go green and reduce the emissions and sell the excess permits
- buy excess permits
5
Q
what does going green depend on
A
the cost comparison between going green and buying TPP
6
Q
evaluation points for TPP
A
- depends on the level of enforcement in the market (tracking emissions of each firm)
- gov failure
7
Q
what are 3 examples GOV failure that can arise from introducing TPP
A
- increasing of black markets for permits/pollution
- passed on cost to the consumer(higher prices)
- increase in unemployment as firms move to other countries with less regulation
