Exam 9: Criteria for Evaluating Environmental Policies

Moral considerations are often a part of the criteria for evaluating public policy. Which of the following is not a moral consideration regarding environmental policy?

Policies that can be readily adapted to new information about damages, technological innovation and changing economic or social conditions are considered .

Refer to the Figure above. MAC₁ represents a mis-estimation of abatement costs. True abatement costs are MAC₂; however, the regulatory agency believes that the costs are represented at MAC₁ and sets policy accordingly. Due to this error, emissions are ________ than the socially efficient level and damages are ___________ than the socially efficient level.

When examining environmental policy outcomes and consequences, equity considerations can be examined at the level of ___________.

When flexibility is added to a policy

Refer to the Table above. Group X represents a low income group and Group Y represents a high income group. Comparing Programs A and B, on the basis of equity, which program would be preferred?

Refer to the Table above. Group X represents a low income group and Group Y represents a high income group. On the basis of efficiency, which program(s) is/are optimal?

A program or policy is efficient if

The paradox of sanctioning is