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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 AND ANSWERS
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ECS2606 Assignment 2Semester 2 2024
(583488) - DUE 20
September 2024
[Company address]
, 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 [10]
Incentive-based policies in environmental economics are strategies designed to
encourage businesses and individuals to reduce their environmental impact through
economic incentives rather than through direct regulations. These policies are often
more flexible and cost-effective than traditional command-and-control regulations. The
main types of incentive-based policies include:
1. Emissions Trading (Cap-and-Trade) Systems
• Description: A cap is set on the total level of emissions allowed, and permits or
allowances are distributed or auctioned to firms. Firms can trade these permits,
creating a financial incentive to reduce emissions.
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