About the us acid rain program

Question

Assignment:

Question 1 perfect information about the control measures adopted by the polluters

• opportunities to understate emissions levels
• cost saving opportunities for the polluters
• clearly written rules for control

Question 2 Command and control methods were more prevalent till the

• 1990s
• 1980s
• 1970s
• present

Question 3 Suppose there are two sources of pollution. Source 1's marginal abatement cost is MAC_1 and Source 2's marginal abatement cost is MAC_2. If MAC_1 > MAC_2, then,

• Source 2 should emit more and Source 1 should control more
• Total abatement cost is being minimized
• Source 1 should emit more and Source 2 should control more
• There is optimal abatement

Question 4 Which of the following true about The US Acid Rain Program? (There could be more than one answers).

• The world's first major application of tradable pollution permits
• The program set a permanent cap on sulphur dioxide emissions by US power plants to 40% reduction in annual emissions within a decade
• The program set a permanent cap on carbon dioxide emissions by US automobiles to 40% reduction in annual emissions within a decade
• The program provided options to reduce emissions and either store permits in banks for future use or sell surplus allowances to other power station operators

Question 5 Compared to traditional command and control measures, the US Acid Rain Program

• was not as effective
• achieved faster and greater reduction in emissions
• had practically no impact on the level of emissions reduction
• proved to be more costly

Question 6 Under the tradable pollution permit system the equilibrium permit price is determined by

• state regulations
• the EPA
• emission levels reduction target
• demand and supply of permits

Question 7 Which of the following emissions control measures provide incentives for technological innovation for better abatement?

• Only emissions trading programs but not emissions charges
• Both emissions trading programs and emissions charges
• There is no incentive for technological innovation
• Command and control measures

Question 8 Which of the following pollution control measures has the highest potential to create price volatility?

• Command and control
• Emissions Charges
• None of the above
• Emissions Trading

Question 9 Under which of the following circumstances does the traditional command and control work better than market bases policies?

• If pollution is concentrated in specific areas creating local hot spots
• In the presence of high monitoring costs
• Traditional methods are always more effective
• When the control technology is already being widely used and easily available

Question 10 Market based environmental policies are

• cost effective but not efficient
• cost effective and efficient (that is they minimize deadweight loss)
• efficient but not cost effective
• results in equal distribution of abatement levels among the sources