Environmental Economics: Introduction and Scope

Description: Environmental Economics: Introduction and Scope
Number of Questions: 15
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Tags: environmental economics sustainability natural resources pollution
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What is the primary focus of environmental economics?

  1. The relationship between economic activities and the environment

  2. The valuation of environmental resources

  3. The design of environmental policies

  4. All of the above


Correct Option: D
Explanation:

Environmental economics encompasses the study of the relationship between economic activities and the environment, the valuation of environmental resources, and the design of environmental policies.

Which of the following is NOT a type of environmental externality?

  1. Pollution

  2. Deforestation

  3. Climate change

  4. Property rights


Correct Option: D
Explanation:

Property rights are not a type of environmental externality. Externalities are costs or benefits that are imposed on a third party as a result of an economic activity.

What is the Coase Theorem?

  1. A theorem that states that externalities can be eliminated through bargaining between the parties involved

  2. A theorem that states that the optimal level of pollution is zero

  3. A theorem that states that the government should always intervene to correct externalities

  4. None of the above


Correct Option: A
Explanation:

The Coase Theorem states that externalities can be eliminated through bargaining between the parties involved, provided that there are no transaction costs.

What is the Pigouvian tax?

  1. A tax that is imposed on a good or service that generates negative externalities

  2. A tax that is imposed on a good or service that generates positive externalities

  3. A tax that is imposed on a good or service that is harmful to the environment

  4. None of the above


Correct Option: A
Explanation:

A Pigouvian tax is a tax that is imposed on a good or service that generates negative externalities. The purpose of the tax is to internalize the cost of the externality, thereby reducing the amount of pollution or other harmful activity.

What is the difference between weak sustainability and strong sustainability?

  1. Weak sustainability allows for the substitution of natural capital with other forms of capital, while strong sustainability does not

  2. Weak sustainability requires that the stock of natural capital be maintained, while strong sustainability requires that the stock of natural capital be increased

  3. Weak sustainability is based on the assumption that natural capital is infinitely substitutable, while strong sustainability is based on the assumption that natural capital is not substitutable

  4. All of the above


Correct Option: D
Explanation:

Weak sustainability allows for the substitution of natural capital with other forms of capital, while strong sustainability does not. Weak sustainability requires that the stock of natural capital be maintained, while strong sustainability requires that the stock of natural capital be increased. Weak sustainability is based on the assumption that natural capital is infinitely substitutable, while strong sustainability is based on the assumption that natural capital is not substitutable.

What is the tragedy of the commons?

  1. A situation in which a shared resource is overused because individuals act in their own self-interest

  2. A situation in which a shared resource is underused because individuals are afraid of being taken advantage of

  3. A situation in which a shared resource is used efficiently because individuals cooperate with each other

  4. None of the above


Correct Option: A
Explanation:

The tragedy of the commons is a situation in which a shared resource is overused because individuals act in their own self-interest. This can lead to the depletion of the resource and the loss of its benefits to all.

What is the concept of ecological footprint?

  1. A measure of the amount of land and water required to produce the goods and services consumed by a person or population

  2. A measure of the amount of pollution generated by a person or population

  3. A measure of the amount of natural resources consumed by a person or population

  4. All of the above


Correct Option: A
Explanation:

The ecological footprint is a measure of the amount of land and water required to produce the goods and services consumed by a person or population. It is a measure of the impact of human activity on the environment.

What is the concept of carrying capacity?

  1. The maximum population size that an environment can sustain indefinitely

  2. The maximum rate of resource consumption that an environment can sustain indefinitely

  3. The maximum level of pollution that an environment can absorb without being harmed

  4. All of the above


Correct Option: A
Explanation:

The carrying capacity is the maximum population size that an environment can sustain indefinitely. It is determined by the availability of resources and the ability of the environment to absorb waste and pollution.

What is the concept of environmental Kuznets curve?

  1. A curve that shows the relationship between economic growth and environmental quality

  2. A curve that shows the relationship between population growth and environmental quality

  3. A curve that shows the relationship between resource consumption and environmental quality

  4. None of the above


Correct Option: A
Explanation:

The environmental Kuznets curve is a curve that shows the relationship between economic growth and environmental quality. It is typically U-shaped, with environmental quality initially declining as economic growth increases, and then improving as economic growth continues to increase.

What is the concept of green GDP?

  1. A measure of economic growth that takes into account the environmental impact of economic activity

  2. A measure of economic growth that takes into account the social impact of economic activity

  3. A measure of economic growth that takes into account the cultural impact of economic activity

  4. None of the above


Correct Option: A
Explanation:

Green GDP is a measure of economic growth that takes into account the environmental impact of economic activity. It is calculated by subtracting the cost of environmental degradation from the traditional measure of GDP.

What is the concept of sustainable development?

  1. A type of development that meets the needs of the present without compromising the ability of future generations to meet their own needs

  2. A type of development that is based on the use of renewable resources

  3. A type of development that is based on the use of non-renewable resources

  4. None of the above


Correct Option: A
Explanation:

Sustainable development is a type of development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It is based on the principles of intergenerational equity and environmental sustainability.

What are the three pillars of sustainable development?

  1. Economic growth, social equity, and environmental protection

  2. Economic growth, social equity, and cultural preservation

  3. Economic growth, social equity, and political stability

  4. None of the above


Correct Option: A
Explanation:

The three pillars of sustainable development are economic growth, social equity, and environmental protection. These three pillars are interdependent and mutually reinforcing.

What are the main challenges to achieving sustainable development?

  1. Poverty, inequality, and environmental degradation

  2. Climate change, resource depletion, and pollution

  3. Population growth, urbanization, and technological change

  4. All of the above


Correct Option: D
Explanation:

The main challenges to achieving sustainable development include poverty, inequality, environmental degradation, climate change, resource depletion, pollution, population growth, urbanization, and technological change.

What is the role of environmental economics in achieving sustainable development?

  1. To help identify and value the environmental costs and benefits of economic activities

  2. To design policies and instruments that promote sustainable development

  3. To educate the public about the importance of environmental sustainability

  4. All of the above


Correct Option: D
Explanation:

Environmental economics plays a vital role in achieving sustainable development. It helps to identify and value the environmental costs and benefits of economic activities, design policies and instruments that promote sustainable development, and educate the public about the importance of environmental sustainability.

What are some of the key policy instruments used to promote sustainable development?

  1. Environmental taxes, subsidies, and tradable permits

  2. Land use planning and regulation

  3. Environmental impact assessment

  4. All of the above


Correct Option: D
Explanation:

Some of the key policy instruments used to promote sustainable development include environmental taxes, subsidies, and tradable permits, land use planning and regulation, and environmental impact assessment.

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