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ECS2606 EXAM PACK 2024/2025
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ECS2606 EXAM PACK 2024/2025 QUESTIONS WITH COMPLETE ANSWERS. COMPILED FROM RECENT PAST PAPERS. PERFECT FOR EXAM PREPARATION.
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,UNIVERSITY EXAMINATIONSMay/June 2024
ECS2606
Environmental Economics
75 Marks
𝟏𝟏
Duration: 2 Hours
𝟐𝟐
First Examiner: Dr I. Maloma
Second Examiner: Ms. L. Nesongozhe
CONFIDENTIAL
,This paper consists of 4 pages.
Instructions:
1. Submit your answers as a single document in PDF format. It is preferable for
you to type your answers (Font: Arial 12) and then convert your document to
PDF format for submission. However, if this is not possible, you may also
write your answers down and scan them to a PDF file. Please write legibly.
2. Start with a cover page stating the module code, ECS2606, and your student
number.
3. Make sure that each question is clearly numbered.
4. While you are not required to cite your sources, this does not mean that you
can simply copy information from any source. You need to answer the
questions in your own words. Plagiarism will not be tolerated and may result
in disciplinary action if detected.
5. Please ensure that you submitted a declaration of honesty on myUnisa.
6. Please ensure that your PDF document is NOT encrypted to a ``secured’’
mode and that it is NOT password protected as these files cannot be marked.
Virus infected files will also not be marked.
7. Submit your answers in one PDF document.
, Secon A (50 marks)
Answer ALL the Quesons
Queson 1
1.1 You want to clean up a lake where ten households live. Explain the problem of
free riding given that you want to charge each household the same amount for
cleaning the lake. (10)
1.2 Explain what you understand by internalizing and externality.
(5)
1.3 Explain the equimarginal principle and why it leads to minimum aggregate
abatement costs (no graph). (5)
1.4 What are externalies? Describe posive and negave externalies.
(5)
Queson 2
Read the excerpt below and answer the queson that follows:
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