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ECS2606 Assignment 2 Semester 2 2024 (583488) - DUE 20 September 2024 R50,00   Add to cart
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  3. University Of South Africa (Unisa)
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  5. Environmental Economics (ECS2606)

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ECS2606 Assignment 2 Semester 2 2024 (583488) - DUE 20 September 2024
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ECS2606 Assignment 2 Semester 2 2024 (583488) - DUE 20 September 2024 QUESTIONS WITH DETAILED ANSWERS

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  • July 29, 2024
  • 13
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

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ECS2606 Assignment 2
Semester 2 2024
(583488) - DUE 20
September 2024
QUESTIONS AND ANSWERS

, ECS2606 Assignment 2 Semester 2 2024 (583488) - DUE 20 September 2024




1. Discuss the different incentive-based policies which are available in environmental

economics. [10]

2. Explain and graphically illustrate whether one standard of emissions can be simultaneously

efficient in a rural and urban area. [15]

3. Analyse the static perspectives of the relationship between economic growth and the

environment in developing countries. Use a graph to illustrate your answer. [10]

4. Describe the concept of technology transfer and discuss ways through which developed

countries can implement technology transfer to developing countries. [15]

1. Incentive-Based Policies in Environmental Economics

Incentive-based (IB) policies are mechanisms designed to encourage individuals and businesses

to reduce their environmental impact through financial incentives rather than through direct

regulation. These policies are often favored because they provide flexibility and can lead to cost-

effective pollution control. Here are some key types of IB policies:

1. Emissions Trading Systems (ETS):

o Cap-and-Trade: A cap is set on the total level of emissions allowed, and

companies receive or buy permits to emit a certain amount. Companies that

reduce their emissions can sell excess permits to others.

o Baseline-and-Credit: Companies earn credits by reducing emissions below a set

baseline, which can then be sold to other companies that exceed their baselines.

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