Question 1

Refer to Table 1. If the firms above faced an emissions tax of $8, what level of total abatement costs would be expended?

Accepted Answer

A)  $69 
B)  24 
C)  $24 in abatement costs and $24 in taxes 
D)  $45 in abatement costs and $24 in taxes 
A)  $69 
B)  24 
C)  $24 in abatement costs and $24 in taxes 
D)  $45 in abatement costs and $24 in taxes

Question 2

A two-part emission charge

Accepted Answer

A)  means changing different rates at different emission levels of a single pollutant 
B)  means some polluters are charged zero, while other polluters are charged a positive fee for the same emission level 
C)  means some polluters earn a subsidy while other polluters pay a charge 
D)  allows polluters to share emissions charges between two facilities 
A)  means changing different rates at different emission levels of a single pollutant 
B)  means some polluters are charged zero, while other polluters are charged a positive fee for the same emission level 
C)  means some polluters earn a subsidy while other polluters pay a charge 
D)  allows polluters to share emissions charges between two facilities

Question 3

If regulators are considering an emissions tax, they will be more uncertain about the resulting level of emissions if

Accepted Answer

A)  firms in the industry experience a steep abatement cost curve. 
B)  firms in the industry experience a flat abatement cost curve. 
C)  the firms are located in a rural area. 
D)  the firms are located in an urban area. 
A)  firms in the industry experience a steep abatement cost curve. 
B)  firms in the industry experience a flat abatement cost curve. 
C)  the firms are located in a rural area. 
D)  the firms are located in an urban area.

Question 4

Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month. If the firm chooses to emit 0 tons/month what is the firm's total cost?

Accepted Answer

A)  $290 
B)  $1290 
C)  $2235 
D)  $1240 
A)  $290 
B)  $1290 
C)  $2235 
D)  $1240

Question 5

Which of the following is true when emission charges are compared to emission standards?

Accepted Answer

A)  Polluters pay both emission charges and abatement cost charges under a policy of emissions charges, but only pay for abatement costs when emission standards are in place. 
B)  Polluters automatically reduce their emissions when abatement costs decline under a policy of emissions charges, but do not reduce their emissions automatically when standards are in place and abatement costs decline. 
C)  Polluters will realize bigger pollution control cost reductions from R&D efforts under a policy of emission charges than under a policy of emission standards. 
D)  all of the above. 
A)  Polluters pay both emission charges and abatement cost charges under a policy of emissions charges, but only pay for abatement costs when emission standards are in place. 
B)  Polluters automatically reduce their emissions when abatement costs decline under a policy of emissions charges, but do not reduce their emissions automatically when standards are in place and abatement costs decline. 
C)  Polluters will realize bigger pollution control cost reductions from R&D efforts under a policy of emission charges than under a policy of emission standards. 
D)  all of the above.

Question 6

Placing a carbon tax "upstream" means

Accepted Answer

A)  applying a carbon tax to retailers (online and brick & mortar stores) 
B)  applying a carbon tax to polluters along rivers and other waterbodies 
C)  applying a carbon tax when fossil fuels are first sold 
D)  applying a carbon tax at the fossil fuel pump for automobiles 
A)  applying a carbon tax to retailers (online and brick & mortar stores) 
B)  applying a carbon tax to polluters along rivers and other waterbodies 
C)  applying a carbon tax when fossil fuels are first sold 
D)  applying a carbon tax at the fossil fuel pump for automobiles

Question 7

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, and it now faces an emissions standard of e1, the firm will

Accepted Answer

A)  emit at level e1 and save (d+e) 
B)  emit at level e1 and save (d) 
C)  emit at level e2 and save (c+d). 
D)  emit at level e1 and save (d+e). 
A)  emit at level e1 and save (d+e) 
B)  emit at level e1 and save (d) 
C)  emit at level e2 and save (c+d). 
D)  emit at level e1 and save (d+e).

Question 8

Refer to Table 1. If the firms above faced an emissions tax of $12, what level of total abatement costs would be expended?

Accepted Answer

A)  33 
B)  57 
C)  $36 in abatement costs and $36 in taxes 
D)  $21 in abatement costs and $36 in taxes 
A)  33 
B)  57 
C)  $36 in abatement costs and $36 in taxes 
D)  $21 in abatement costs and $36 in taxes

Question 9

The primary source of carbon dioxide emissions is

Accepted Answer

A)  deforestation 
B)  burning fossil fuels 
C)  exhaling by all animal life 
D)  rotting plant debris 
A)  deforestation 
B)  burning fossil fuels 
C)  exhaling by all animal life 
D)  rotting plant debris

Question 10

Which of the following statements about abatement subsidies is NOT true?

Accepted Answer

A)  Environmental groups dislike abatement subsidies because they appear to reward polluters. 
B)  Governments like abatement subsidies because they are relatively inexpensive to implement. 
C)  Abatement subsidies are popular with firms. 
D)  Abatement subsidies create perverse incentives for firms to increase emissions when their base levels are being set. 
A)  Environmental groups dislike abatement subsidies because they appear to reward polluters. 
B)  Governments like abatement subsidies because they are relatively inexpensive to implement. 
C)  Abatement subsidies are popular with firms. 
D)  Abatement subsidies create perverse incentives for firms to increase emissions when their base levels are being set.

Question 11

Emission charges is a term that is synonymous with ________________.

Accepted Answer

A)  emission subsidies 
B)  emission taxes 
C)  emission prices 
D)  emission permits 
A)  emission subsidies 
B)  emission taxes 
C)  emission prices 
D)  emission permits

Question 12

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, it will

Accepted Answer

A)  emit at level e1 and save (d+e). 
B)  emit at level e1 and save (d). 
C)  emit at level e2 and save (c+d). 
D)  emit at level e1 and save (d+e) 
A)  emit at level e1 and save (d+e). 
B)  emit at level e1 and save (d). 
C)  emit at level e2 and save (c+d). 
D)  emit at level e1 and save (d+e)

Refer to Table 1. If the firms above faced an emissions tax of $8, what level of total abatement costs would be expended?

A two-part emission charge

If regulators are considering an emissions tax, they will be more uncertain about the resulting level of emissions if

Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month. If the firm chooses to emit 0 tons/month what is the firm's total cost?

Which of the following is true when emission charges are compared to emission standards?

Placing a carbon tax "upstream" means

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC₁. If the firm is able to lower its abatement cost curve to MAC₂_,and it now faces an emissions standard of e₁, the firm will

Refer to Table 1. If the firms above faced an emissions tax of $12, what level of total abatement costs would be expended?

The primary source of carbon dioxide emissions is

Which of the following statements about abatement subsidies is NOT true?

Emission charges is a term that is synonymous with ________________.

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC₁. If the firm is able to lower its abatement cost curve to MAC₂_,it will

What Is Environmental Economics

The Economy and the Environment

Benefits and Costs, Supply and Demand

Economic Efficiency and Markets

The Economics of Environmental Quality

Framework of Analysis

Benefit-Cost Analysis: Benefits

Benefit-Cost Analysis: Costs

Criteria for Evaluating Environmental Policies

Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

Command-And-Control Strategies: the Case of Standards

Incentive-Based Strategies: Market Trading Systems

Federal Water Pollution-Control Policy

Federal Air Pollution-Control Policy

Federal Policy on Toxic and Hazardous Substances

State and Local Environmental Issues

The Global Environment

International Environmental Agreements

Globalization

Economic Development and the Environment

Filters

Exam 12: Incentive-Based Strategies: Emission Charges and Subsidies

Refer to Table 1. If the firms above faced an emissions tax of $8, what level of total abatement costs would be expended?

A two-part emission charge

If regulators are considering an emissions tax, they will be more uncertain about the resulting level of emissions if

Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month. If the firm chooses to emit 0 tons/month what is the firm's total cost?

Which of the following is true when emission charges are compared to emission standards?

Placing a carbon tax "upstream" means

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, and it now faces an emissions standard of e1, the firm will

Refer to Table 1. If the firms above faced an emissions tax of $12, what level of total abatement costs would be expended?

The primary source of carbon dioxide emissions is

Which of the following statements about abatement subsidies is NOT true?

Emission charges is a term that is synonymous with ________________.

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, it will

What Is Environmental Economics

The Economy and the Environment

Benefits and Costs, Supply and Demand

Economic Efficiency and Markets

The Economics of Environmental Quality

Framework of Analysis

Benefit-Cost Analysis: Benefits

Benefit-Cost Analysis: Costs

Criteria for Evaluating Environmental Policies

Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

Command-And-Control Strategies: the Case of Standards

Incentive-Based Strategies: Market Trading Systems

Federal Water Pollution-Control Policy

Federal Air Pollution-Control Policy

Federal Policy on Toxic and Hazardous Substances

State and Local Environmental Issues

The Global Environment

International Environmental Agreements

Globalization

Economic Development and the Environment

Filters

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC₁. If the firm is able to lower its abatement cost curve to MAC₂_,and it now faces an emissions standard of e₁, the firm will

Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC₁. If the firm is able to lower its abatement cost curve to MAC₂_,it will