Exam (elaborations)
2008 Exam Environmental Economics
- Module
- Environmental Economics
- Institution
- Loughborough University (LU)
This document provides the summer 2009 past paper exam for Environmental Economics for Loughborough University.
[Show more]
Seller
Follow
Content preview
ENVIRONMENTAL ECONOMICS(08ECC139)
Summer 2009 2 Hours
Answer ALL questions in Section A and TWO questions from Section B.
Any approved University Calculator is permitted.
You must write your answers using in ink.
Answers written in pencil may receive a zero mark.
SECTION A
1. Using only an annotated diagram, indicate the efficient tax on emissions from a
factory.
[10 marks]
2. Assume the world consists of two countries, X which is poor and Y which is rich.
The total benefits (B) and total costs (C) of emissions abatement (A) are given by
the functions:
BX = 8(AX + AY)
BY = 5(AX + AY)
(a) Obtain the non-cooperative equilibrium levels of abatement for X and Y.
[10 marks]
(b) Obtain the cooperative equilibrium levels of abatement for X and Y.
[10 marks]
3. Explain the intuition which underlies the Hartwick rule for capital accumulation.
[10 marks]
SECTION B
4. Explain why the Environmental Kuznets Curve (EKC) has an ‘inverted U-shape’.
Paying particular attention to the role of developing countries, can we conclude
from studies which provide empirical support for the EKC hypothesis that economic
growth is good for the environment? [30 marks]
5. Assess the relative merits of tradable market permits and ONE other pollution
control instrument. Drawing on the findings from laboratory experiments, provide
some policy advice on designing a tradable permit system. [30 marks]
6. Distinguish between weak and strong sustainability. Explain the principal features
of Solow’s model of intergenerational natural resource allocation and assess
whether the key result holds for alternative specifications of the production function.
[30 marks]
Page 1 of 2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StudyMadeEasy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now